Ocean Shipping Reform Act of 2022
Jun 16, 2022
Statute: 136 Stat. 1272
Became law: Jun 16, 2022
Jun 16, 2022
Statute: 136 Stat. 1272
Became law: Jun 16, 2022
Summary
Creates new rules for ocean shipping companies to stop unfair fees and practices, helping to make the transport of goods more efficient and competitive.
What problem does this solve?
Shipping companies were charging high, often unfair, fees and could refuse to carry U.S. exports, which hurt American businesses and clogged up ports. This law gives the government more power to stop these practices, require fee refunds, and make the shipping process fairer for everyone.
What does this law do?
Prohibits unfair refusal of cargo
Stops ocean carriers from unreasonably refusing to provide available cargo space, which helps ensure U.S. exports can be shipped.
Requires detailed fee invoices
Forces carriers to include specific information on all detention and demurrage fee invoices. If the information is missing, the charged party does not have to pay the fee.
Shifts burden of proof for fees
Makes the ocean carrier responsible for proving that any detention or demurrage charges they issue are reasonable and fair.
Bans retaliation against shippers
Prevents carriers from punishing shippers for filing a complaint or for using a different carrier's services.
Authorizes fee refunds
Gives the Federal Maritime Commission the power to order carriers to refund money for unfair charges, in addition to or instead of levying fines.
Creates a public complaint process
Requires the Federal Maritime Commission to create a process for people to submit complaints about charges, which the commission must then investigate.
Increases data transparency
Requires the Federal Maritime Commission to publish quarterly reports on the total import and export tonnage for each ocean carrier.
Grants temporary emergency authority
Allows the Federal Maritime Commission to issue temporary emergency orders during times of port congestion to require carriers to share information and improve cargo flow.
Who does this affect?
- Shippers (U.S. businesses that import/export goods)
- Ocean carriers
- Marine terminal operators
What is the real world impact?
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Protects U.S. businesses
Aims to shield American companies, especially farmers and exporters, from unfair treatment by foreign-owned ocean carriers who might prioritize more profitable routes over carrying U.S. goods.
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Lowers costs for consumers
Reduces surprise fees and high shipping costs for businesses. These savings can be passed on to customers, potentially lowering the price of goods.
When does this start?
This law became effective on June 16, 2022, and sets multiple deadlines for new government rules to be created within the following year.
Rulemaking on unreasonable refusal of cargo
The Federal Maritime Commission must start creating a rule defining 'unreasonable refusal to deal' within 30 days and issue a final rule within 6 months of the law's enactment.
Rulemaking on demurrage and detention
The Federal Maritime Commission must start creating a rule about unfair demurrage and detention charges within 45 days and issue a final rule within one year of the law's enactment.
Rulemaking on unfair methods
The Federal Maritime Commission must start creating a rule defining 'unfair or unjustly discriminatory methods' within 60 days and issue a final rule within one year of the law's enactment.