The bill was sponsored by Johnson and lawmaker John Garamendi (Democrat). Both introduced the bill in August this year after months of significant supply chain delays and anti-competitive and unfair practices by foreign-flagged shipping carriers.
This will ensure a more competitive global shipping industry, protect American businesses and consumers from price increases, and establish reciprocal business opportunities to reduce the United States’ long-standing trade imbalance with export-oriented countries like the United States. China, Johnson’s office said in a press release.
The Ocean Shipping Reform Act was recently passed by the United States House of Representatives by 364-60. The bill is the first major overhaul of federal regulations for the global shipping industry in over 30 years and resolves the supply chain crisis and protects South Dakota’s agricultural exporters from unfair trade practices , said Republican lawmaker Dusty Johnson.
Biparty legislation is now before the Senate for review. The act is supported by more than 360 national, state and local groups and companies.
The law would establish reciprocal trade to promote US exports as part of the Federal Maritime Commission (FMC) mission; require shipping carriers to adhere to minimum service standards that meet the public interest and reflect the best practices of the global shipping industry; and requiring marine carriers or marine terminal operators to certify that all late charges (detention and demurrage charges) comply with federal regulations or face penalties.
It would also shift the burden of proof regarding the reasonableness of the âhold or demurrageâ charge from the portion billed to the ocean carrier and prohibit ocean carriers from unreasonably denying US export opportunities.
The National Retail Federation and the Retail Industry Leaders Association applauded the development.
Fibre2Fashion Information Office (DS)