OSRA Legislation Signed into Law

President Biden signed S.3580, the Ocean Shipping Reform Act of 2022 (OSRA22), into law. IWLA endorsed the legislation in October of 2021 and advocated for its passage in Congress. In the days before final votes took place in the Senate and House of Representatives, IWLA joined an industry letter to Congress, calling on leadership to send a final bill to the President’s desk for his signature.

OSRA22 will modernize the Shipping Act to address 21st century challenges. Due to port congestion issues beyond their control and supply chain shortages exacerbated by the COVID-19 pandemic, shippers, including cargo owners and truckers, often face increasingly high detention and demurrage fees on carrier invoices. OSRA22 will require carrier invoices to include accurate information on a container’s availability date, port of discharge, free time, and rates. Shippers wouldn’t be obligated to pay fees if an invoice is inaccurate, and the Federal Maritime Commission (FMC) could impose penalties or require refunds if a carrier’s invoice is found to include false or inaccurate information. The legislation will also require ocean carriers to report quarterly on the total import/export tonnage and twenty-foot equivalent units (loaded/empty) per vessel that make port in the U.S. and prohibit carriers from unreasonably refusing cargo space accommodations when available.

OSRA22 marks the first major update to ocean shipping regulations since 1998. The Biden administration hopes the new law will help reign in inflation, ease port congestion, and ensure fairer treatment of American businesses and the agriculture industry.

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