Lawmakers Introduce Bill to Build on OSRA 2022
Reps. John Garamendi, D-Calif., and Dusty Johnson, R-S.D., unveiled new legislation this week that they said will build on last year’s Ocean Shipping Reform Act (see 2303240068) by further expanding the Federal Maritime Commission's authority and “crack down” on China’s “attempts to influence America’s supply chain.” The Ocean Shipping Reform Implementation Act, introduced March 29, would block U.S. ports from using Chinese state-sponsored logistics software, allow the FMC to investigate foreign shipping exchanges to “preempt improper business practices," authorize the commission to “streamline data standards” to aid maritime freight logistics and more.
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“We’ve seen the positive results of the Ocean Shipping Reform Act, but there is more to be done to stay tough on China,” Johnson said. Garamendi said the bill will help promote free trade and is aimed at “stopping Chinese state-controlled companies from ripping off our country.”
The bill would establish a “formal process” within the FMC for industry to report complaints against shipping exchanges -- such as the Shanghai Shipping Exchange -- and would ban ports’ use of China’s National Transportation Logistics Public Information Platform (LOGINK) and other similar “malware.” Another measure would require the FMC to seek public comments on a “data standard” for information sharing in the maritime freight logistics sector, and another provision would allow the Transportation Department to collect more information on port operations, including the “total of incoming and outgoing containers and yard capacity.”
The legislation also would clarify that the FMC may “stipulate additional minimum requirements for service contracts” by ocean carriers “at the agency’s discretion.” Another provision would update certain aspects of the FMC’s shipping regulations “to better reflect current federal policy governing international ocean shipping” and establish “reciprocal trade as part of Federal Maritime Commission’s mission in enforcing the Shipping Act.” The FMC also would be prohibited from requiring carriers to report information already reported to other federal agencies.
The legislation received backing from several trade groups. The bill “confirms the purpose of OSRA to advance the interests of US agriculture exports,” AgTC President Peter Friedman said. Krysta Harden, CEO of the U.S. Dairy Export Council, said the bill gives the FMC the “full suite of tools necessary to return balance and certainty for American dairy exports,” while Tom Madrecki, Consumer Brands Association official, said the association is “encouraged” by congressional efforts to “ensure the federal government is equipped with the policy and regulatory tools it needs to protect American shippers and ensure the seamless operation of U.S. supply chains.”