How the Ocean Reform Act Could Impact Shipping and Inflation
It's the first significant revision to maritime legislation since 1984
On Thursday afternoon, President Joe Biden signed the bipartisan Ocean Reform Act, the first major revision of U.S. maritime regulation since the Shipping Act of 1984. The Biden administration says the new law will help reduce costs for families and ensure fair treatment for American businesses including the agriculture industry.
The bill addresses the high detention and demurrage (late fees) charged by the ocean carriers and terminals which are paid by importers and exporters. These charges are then passed on to the consumer, adding to inflation.
The Federal Maritime Commission, the agency in charge of the facilitation of U.S. waterborne trade, will now have more tools so it can move forward on recommendations made by FMC Commissioner Rebecca Dye in her two-year fact-finding investigation into ocean shipping supply chain issues during the pandemic. There is also additional legislation protecting the U.S. importer or exporter from any retaliation.
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