SACRAMENTO — Editor’s note: President Joe Biden has signed the Ocean Shipping Reform Act into law. The agriculture organizations listed below have issued statements following this announcement.
The Almond Alliance of California
The Ocean Shipping Act Reform Act Signing Is A Big Win For American Workers, Farms, and Supply Chain
Aubrey Bettencourt, President/CEO of the Almond Alliance of California, attended the signing of the Ocean Shipping Reform Act on Thursday, June 16, 2022.
“After a year and a half of supply chain problems, a massive trade imbalance, challenges at ports this bipartisan and bicameral legislation will take key steps toward easing current supply chain challenges by expanding the authority of the Federal Maritime Commission to promote U.S. exports through a maritime system that is transparent, efficient, and fair,” said Aubrey Bettencourt. “The Ocean Shipping Reform Act will bring American Grown goods to market, preserve America’s reputation as a trade partner, and show that we can come together to meet challenges.”
After two years of effort by agriculture exporters, retailers, and others, Congress approved S.3580, the Ocean Shipping Reform Act of 2022, sending it to the President for his signature.
Specifically, this legislation:
• Expands safeguards to combat retaliation and deter unfair business practices;
• Clarifies prohibited carrier practices on detention and demurrage charges and vessel space accommodation;
• Establishes a shipping exchange registry through the FMC;
• Expands penalty authority to include a refund of charges; and
• Increases efficiency of the detention and demurrage complaint process.
Bettencourt continued, “The Ocean Shipping Reform Act is a big win for American workers, farms, businesses, and supply chain, providing the tools to modernize our policies and practices to support American exports and our reputation as a worldwide trade partner. Thank you to the California delegation and President Biden for your continued leadership.”
Western Growers
Western Growers Celebrates President Joe Biden Signing the Ocean Shipping Reform Act into Law
OSRA will crack down on unreasonable practices by container shipping lines
President Joe Biden signed the Ocean Shipping Reform Act into law. This bill – which passed the U.S. Congress earlier this week with bipartisan support – will crack down on unreasonable practices by container shipping lines, bolster U.S. enforcement against uncompetitive carrier practices and improve transparency for exporters.
Western Growers has proactively supported OSRA throughout its progression in the House and Senate. Western Growers President and CEO Dave Puglia issued the following statement:
“Western Growers is very pleased to see the Ocean Shipping Reform Act signed into law, as it will help ensure fairer shipping practices and standards for our agricultural exports. The ongoing supply chain and port challenges are restricting our farmers’ ability to reach overseas opportunities. This bill provides much-needed improvements to the maritime shipping environment, which has increasingly become too unpredictable and costly for our exporters to remain competitive. We remain committed to pushing back against unreasonable rejections and other actions that are harmful to our shippers.
I appreciate the bipartisan efforts in both chambers to move this bill forward. WG especially applauds the efforts of Reps. John Garamendi and Dusty Johnson, who were instrumental in setting this important legislation in motion and have been unwavering in their support of our farmers.
I thank the Administration for its support and swift enactment of OSRA, and I look forward to similarly immediate action by the Federal Maritime Commission to wield its new authorities on behalf of U.S. exporters.”
Among other provisions, OSRA will:
- Prohibit carriers from ‘unreasonably’ refusing export cargo bookings as defined by the Federal Maritime Commission.
- Prohibit carriers from imposing fees that don’t comply with federal regulations.
- Prohibit carriers from improperly charging detention and demurrage, and shifts the burden of proof onto the carriers rather than the shipper.
- Strengthens the Federal Maritime Commission’s ability to investigate complaints and levy penalties.
- Requires U.S. Department of Transportation to work with supply chain stakeholders on identifying new or improved inland port and container staging opportunities.
For nearly two years, U.S. agricultural exporters have faced extreme challenges getting their products onto ships and out to foreign buyers, including record-breaking congestion and delays at ports, shipping lines’ persistent failure to provide accurate notice of arrival/departure and cargo loading times, excessive financial penalties and other fees, as well as skyrocketing freight rate costs.
California Farm Bureau
Farm Bureau President Praises Signing of Ocean Shipping Reform Act
California Farm Bureau President Jamie Johansson today applauded President Joe Biden for signing the bipartisan Ocean Shipping Reform Act into law. Passed by the House of Representatives on Monday by a vote of 369-42, the measure seeks to address export backlogs and supply chain disruptions that have severely impacted agriculture.
“Today’s signing by President Biden marks the first real regulatory effort to understand and correct the current bottleneck at our ports. The inability of agricultural producers and processors to efficiently export food products, which have been stranded at our ports to rot, has resulted in detention and demurrage fees at rates far surpassing global averages.
“These disruptions have severely impacted the lives and livelihoods of our farmers and ranchers. Last year, port congestion cost California farm producers $2.1 billion in lost export income between May and September alone, and port problems continue.
“It is the California Farm Bureau’s hope that the enactment of this bipartisan legislation reinstates fair trade practices for our farm producers. We look forward to quick action in coming weeks that brings greater transparency to fee charges and, in the coming year, redefines what it means for an ocean shipper to decline an agricultural shipment. We urge the Federal Maritime Commission to employ tools under this act to ensure fair practices by ocean carriers and accelerated shipping for California’s vast array of agricultural products.
“We appreciate the leadership of Reps. John Garamendi (D-CA) and Dusty Johnson (R-SD) for creating the original legislation in the House and working with Sens. Amy Klobuchar (D-MN) and John Thune (R-SD) to achieve final passage in both houses.”
The California Farm Bureau works to protect family farms and ranches on behalf of nearly 31,000 members statewide and as part of a nationwide network of nearly 6 million Farm Bureau members.