“Whether it’s food, packaging or equipment restaurants depend on, supply chain disruptions are so bad [that] American importers and exporters are paying the highest shipping rates ever recorded for the worst service levels ever experienced.”
— Sean Kennedy Executive Vice President of Public Affairs National Restaurant Association
are so bad [that] American importers and exporters are paying the highest shipping rates ever recorded for the worst service levels ever experienced,” Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, said after the bill’s fi nal passage. “There’s no silver bullet that will solve the nation’s supply chain challenges, but we’re hopeful this legislation will provide some relief by updating federal regulations for the global shipping industry. After months of advocating with our supply chain partners for these changes, we hope modernization of the Ocean Shipping Act will help reduce shipping costs and improve supply chain challenges.” David French, senior vice president for government relations at the National Retail Federation, shares Kennedy’s optimism. “Retailers and thousands of other businesses depend on the global maritime transportation system to move goods through the supply chain every day and continue to face signifi cant challenges, including unfair business practices by ocean carriers,” he said after the House approved the bill. “Making OSRA federal law helps address longstanding systemic supply chain and port disruption issues that existed well before the pandemic by providing the Federal Maritime Commission the additional authority it needs. Additionally, it provides critical updates to the international maritime
18 FEDA News & Views
transportation system, which has been severely impacted by COVID-19.” The bill:
• Gives the Federal Maritime Commission (FMC) the authority to stop international ocean carriers from unreasonably declining American cargo
• Directs the FMC to initiate investigations of ocean carrier business practices and apply enforcement measures • Requires international ocean carriers to report to the FMC how many empty containers are being transported
• Provides the FMC with temporary emergency authority to collect data during times of emergency congestion • Establishes the FMC Offi ce of Consumer Affairs and Dispute Resolution Services to better aid American businesses seeking assistance from the FMC • Requires international ocean carriers to take on the burden of proof in demurrage and detention charges
• Stops international shipping companies from retaliating against exporters and importers • Improves chassis management through Bureau of Transportation Statistics data collection on chassis dwell time and a National Academy of Sciences study on best practices for chassis management.
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