International Housewares Association

Industry Education, Tradeshow, Resources + More - IHA

  • All Posts
  • Show
  • Executive Networking
    • CHESS Conference
    • CORE Networking Groups
  • Global Opportunities
    • Connect GLOBAL
    • IBC Global Forum
    • Trade Missions
    • Key Buyer / Market Reports
    • Export 101
    • Global Retail Intelligence
  • Education
    • Smart Home
    • Gourmet Home
    • Webinars
    • Trends
    • Housewares History
  • Industry Resources
    • U.S. Retail Intelligence
    • IHSA Shippers Association
    • Government Affairs & Legal
  • Inspiration Magazine
    • Design
    • Innovation
    • Inspiration
    • Trends

The Ocean Shipping Reform Act goes to a House-Senate Conference

May 1, 2022

Key to untying the Gordian knot known as the supply-chain crisis is recognizing and addressing unreasonable business practices by ocean carriers.  Some of these practices can likely be attributed to consolidation, and a recent report by Commissioner Carl Bentzel, Federal Maritime Commission (FMC), finds the shipping container (“containerization”) was a key factor in this consolidation.

Bentzel’s report explains that containerization caused the production of bigger ocean vessels with more mammoth cargo capacities that only larger companies could operate.  As a result, the ocean carrier industry went from 25 major companies in the 1990s to nine now.  And these companies have arguably amassed even more power by being segmented into three ocean carrier alliances.

Ocean carrier dominance in the shipping equation, along with modest governmental oversight, caused festering grievances from others in the supply chain that finally boiled over when post-pandemic consumer demand stretched the system.  Complaints from three major constituency groups—importers (including IHA members), agricultural exporters, and truckers—created a powerful coalition that spurred Congress to move at an extraordinary pace to address these problems.

Last August, a bipartisan group of House members introduced the Ocean Shipping Reform Act of 2021 (OSRA21), which is basically a “Shippers Bill of Rights” that would give the FMC more enforcement tools to curb unreasonable ocean carrier practices.  OSRA 21 also would boost shippers’ legal standing when filing complaints with the FMC and provide more ocean carrier accountability.

The House passed OSRA21 (H.R. 4996) in December by a vote of 364-60.  This swift victory was due in part to IHA members using an e-platform to urge their members of Congress to vote for the bill.   IHA members and others also helped generate momentum in the Senate for the bill and on Feb. 3, 2022, a bipartisan group of Senators introduced OSRA22 (S. 3580).

OSRA22 was approved in committee with language similar to the House bill and then it passed the Senate on March 31 by voice vote.  While this was happening, the House passed OSRA21 two more times; first as an amendment to a China competition bill (the America COMPETES Act) and then as part of the Coast Guard Authorization bill.

OSRA21 and 22 now go to a House-Senate conference to reconcile differences.  Once done, a final bill could be taken up in both chambers as stand-alone legislation, or as part of a China competition package, or in the Coast Guard Authorization that’s added to the National Defense Authorization Act.

On April 20, the OSRA coalition sent a letter to House and Senate leaders signed by 91 trade associations including IHA urging a quick conference and recommending provisions where there are differences.  These include: a requirement for ocean carriers to adhere to minimum service standards that meet the “public interest;”  a certification requirement for a demurrage and detention charge; a provision 1) prohibiting carriers from failing to furnish or 2) causing a contractor to fail to furnish the facilities and instrumentalities needed to perform the transportation services; and a provision allowing third parties to intervene in FMC action against ocean carriers alleging anticompetitive conduct.

Filed Under: All Posts, Featured, Government Affairs & Legal, Industry Resources Tagged With: Government Affairs

Recent Show Posts

Special Spaces

Decidedly Danish

Sculpting a Community

Jumbled Joy

Perfectly Porland

The Inspired Home Show 2022

IHA
6400 Shafer Court, Suite 650
Rosemont, IL 60018
United States of America

T: +1-847-292-4200
F: +1-847-292-4211

Staff Directory
Privacy and Legal

Connect With IHA

International Housewares Association
  • Facebook
  • Linkedin
  • Twitter
  • YouTube

Connect With The Inspired Home

The Inspired Home
  • Bloglovin
  • Facebook
  • Instagram
  • Pinterest
  • Twitter
  • YouTube

© 2022 International Housewares Association · Design by Brian Lis · Log in

By clicking Accept, I agree with IHA’s privacy and cookie policies. Click here to review the policies