Ocean Shipping Reform Act Passes Congress, Awaits President’s Signature

The U.S. House of Representatives voted 369-42 Monday to approve the Senate’s version of the Ocean Shipping Reform Act. As agriculture shippers continue to be impacted by cancelled or delayed sailings, unfair detention and demurrage fees, and lack of container availability, the bipartisan legislation seeks to provide some much-needed relief.

Supported by ASTA, the legislation calls for a number of steps to help reduce bottlenecks at U.S. ports and improve conditions for agricultural exports. This includes: requiring ocean carriers to certify that late fees comply with federal regulations or face penalties; shifting burden of proof regarding the reasonableness of “detention or demurrage” charges from the invoiced party to the ocean carrier; prohibiting ocean carriers from unreasonably declining shipping opportunities for U.S. exports; and more.

The legislation is now headed to the White House, where President Biden has indicated he will sign it into law.