Author Name: Tiffany Lee – Marketing Analyst at FreightAmigo｜16/6/2022
The Ocean Shipping Reform Act (OSRA 2022) was passed by the United States House of Representatives on 13th June (United States Standard Time) with 369 votes in favor and 42 votes against. This is the most important reform in the shipping industry since 1998. As U.S. shipping prices continue to rise and inflation is difficult to suppress, supporters say that the OSRA 2022 help to relieve inflation and container backlogs.
The Federal Maritime Commission’s (FMC) would be empowered, allowing the FMC to investigate and enforce container shipping carriers’ business practices. The OSRA 2022 strengthens FMC’s authority to regulate international shipping businesses and increase industry transparency. Supporters believe that the law will limit the extra fees imposed by shipping carriers, effectively lowering ocean freight rates, and lowering costs for retailers, farmers, and consumers in the United States.
However, some shipping companies believe that the passing of the OSRA 2022 will only have a limited effect on lowering freight rates and will not address the main reason of high ocean freight rates. They feel that the reason for the sustained high ocean freight rate is shortage of transportation, which has resulted in congestion at ports and on land, and they recommend that shipping carriers should invest in trucking logistics infrastructure instead.
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