The Ocean Shipping Reform Act, sponsored by Senator John Thune (R-SD) and co-sponsored by 12 Senate colleagues representing both sides of the aisle, should alleviate a number of problems which have emerged since the advent of COVID including port congestion and exorbitant shipping costs.

The intended legislation is strongly supported by agricultural associations and commodity groups.

When enacted, the Ocean Shipping Reform Act would regulate the following aspets of trade:

• Late fees referred to as ‘detention and demurrage’ would be required to comply with Federal regulations.
• Ocean carriers would bear the cost of detention and demurrage.
• The Act would prohibit ocean carriers from unreasonably declining shipping opportunities.  Shipping companies are returning empty containers to Asia without providing an opportunity for U.S. exporters to fill containers and ship product.
• Ocean carriers will be required to report to the Federal Maritime Commission on the number of containers (as 20-foot equivalent units), either loaded or empty per vessel.
• The Federal Maritime Commission will be authorized to initiate investigations of business practices followed by ocean common carriers and apply enforcement measures.