Published by The Maritime Executive

Published by The Maritime Executive

Published by The Maritime Executive

Published by The Maritime Executive

Published Mar 31, 2022 8:55 PM by The Maritime Executive

In a rare moment of bipartisanship in a deeply divided U.S. Congress, the Senate today passed the Ocean Shipping Reform Act with a simple voice vote. According to the sponsors, the bill, which received bipartisan co-sponsorship and broad industry endorsement, strengthens the authority of the Federal Maritime Commission and will level the playing field for American exporters. It is designed to make it harder for ocean carriers to unreasonably refuse goods ready to export at ports and charge shippers exorbitant fees.

“Congestion at ports and increased shipping costs pose unique challenges for U.S. exporters, who have seen the price of shipping containers increase four-fold in just two years, raising costs for consumers and hurting our businesses,” said Senator Amy Klobuchar, one of the bill's sponsors. “Ocean carriers that are mostly foreign-owned have reported record profits. This legislation will help American exporters get their goods to market in a timely manner for a fair price.”

The bill represents the first significant reform of the regulations governing the movement of goods at U.S. ports taking direct aim at the criticisms that have emerged of the container carriers over the past two years. The bill passed by the Senate focuses on fees charged by the carriers as well as business practices that U.S. manufacturers and the agricultural sector have said are the reasons behind the dramatic declines in U.S. exports.

Addressing the concerns on exports, the bill prohibits ocean carriers from unreasonably declining shipping opportunities for U.S. exports, with the FMC determining the policies in a new rule making authority. Further, it requires ocean common carriers to report to the FMC each calendar quarter on total import and export tonnage and TEUs (loaded/empty) per vessel that call at U.S. ports.

The FMC’s authority is also expanded with new authorization to self-initiate investigations of ocean common carrier’s business practices and apply enforcement measures. Further, to address the concerns raised by the Biden Administration regarding the domination of the three shipping alliances, the bill establishes a new authority for the FMC to register shipping exchanges.

One of the key points of contention from shippers has been fees, with several pending complaints currently in front of the FMC. Under the bill, the burden of reasonableness is shifted to the ocean carriers which would be required to certify that late fees, i.e. detention and demurrage charges, comply with federal regulations along with giving the FMC the authority to level penalties. Previously, the invoiced party was required to demonstrate when the fees were unreasonably applied to their shipments.

“I’m glad the Senate unanimously passed this important legislation that would level the playing field for American farmers, exporters, and consumers by making it harder for ocean carriers to unreasonably refuse goods that are ready to export at U.S. ports,” said Senator John Thune who developed the Senate version of the legislation with Klobuchar. “Especially with record inflation in prices of goods, this legislation would also benefit consumers by promoting the fluidity and efficiency of the supply chain.”

The bill moved quickly through the U.S. Senate after being first introduced by Klobuchar and Thune at the beginning of February. The draft cleared committee and moved to the floor of the Senate just over a week ago. Passage of the Senate version of the bill means that it now proceeds to conference to resolve differences with the bill passed the House with overwhelming bipartisan support by a vote of 364-60 in December 2021. 

The bill and especially the house version however has faced strong opposition from the shipping industry as represented by the World Shipping Council. The lobby group has said the bill fails to address the root causes of the U.S. landside congestion, saying that instead of making it more difficult for carriers the U.S. needs to invest in its ports and infrastructure. 

President Biden called on the U.S. Congress during his State of the Union Address to pass reform legislation governing ocean shipping. It is widely anticipated that the president will sign the bill when it reaches his desk.

Published Apr 7, 2022 12:33 AM by The Maritime Executive

In an after-accident report released Tuesday, the National Transportation Safety Board warned of the risk of "sleep inertia" - the temporary feeling of grogginess felt after waking up - for mariners on a rotating watch schedule.  According to NTSB, sleep inertia usually lasts for about 30 minutes after waking, and it may last longer if a person is sleep deprived. It is a common condition for shift workers in all industries, according to the Sleep Foundation. NTSB advises that mariners...

Published Apr 6, 2022 10:33 PM by The Maritime Executive

Turkish military forces have located and neutralized another drifting naval mine in the Black Sea, marking the third in Turkish waters and the fourth in the region since the start of the invasion of Ukraine. On Wednesday, an Underwater Defense (SAS) dive team was ordered to the site to neutralize the mine, and it was successfully detonated.  In a statement, Turkey's defense ministry said that a Liberian-flagged merchant ship had spotted the mine off the coast of Kefken, a town...

Published Apr 6, 2022 9:17 PM by The Maritime Executive

The government of Canada is planning to green-light Equinor's Bay du Nord offshore oil project, according to Canada's CBC.  The controversial $12 billion development would unlock about 0.3-1.0 billion barrels of oil from several fields off the coast of Newfoundland and Labrador. It would create at least $2.8 billion in revenue for Canada's government, according to Equinor, and would lead to the creation of thousands of jobs in politically important regions of Atlantic Canada. Survey data suggests that the overwhelming...

Published Apr 6, 2022 8:32 PM by The Maritime Executive

France’s Chantiers de l’Atlantique shipyard in Saint-Nazaire completed the handover today of the newest cruise ship in the world, Celebrity Beyond to Celebrity Cruises, part of the Royal Caribbean Group. At 140,000 gross tons, she is the largest cruise ship in the Celebrity Cruises fleet expanding on the innovations contained in the Edge class first introduced in 2018. Like the two earlier ships of the class, Celebrity Edge and Celebrity Apex, the new cruise ship features the unique silhouette of...

© Copyright 2022 The Maritime Executive, LLC. All rights reserved.