Wine Institute is supporting the Ocean Shipping Reform Act (H.R. 4996), introduced by Reps. John Garamendi (D-CA) and Dusty Johnson (R-ND) The measure seeks to address delays and disruptions within the supply chain and ocean shipping industry by giving the Federal Maritime Commission (FMC) new authority and direction. The measure passed the House in December and is awaiting action in the Senate.
The bill would expand the FMC’s regulatory authority through investigations of ocean carriers’ business practices and stricter enforcement policies. Ocean carriers and port operators would be required to certify that late fees (detention and demurrage) comply with federal regulations or face penalties.
Notably, the bill directs the FMC to establish rules prohibiting ocean common carriers and marine terminal operators from adopting and applying unjust and unreasonable demurrage and detention fees and authorizes the FMC to initiate investigations of an ocean common carrier’s fees or charges and apply enforcement measures as appropriate. Ocean carriers would be required to file quarterly tonnage reports for each vessel and be prohibited from rejecting reasonable export bookings and contracts from U.S. exporters. The legislation would also create reciprocal opportunities to address the trade imbalance with China. The bill, which is currently awaiting consideration in the Senate, is supported by more than 50 leading national trade associations.