At IMC, We Support the Ocean Shipping Reform Act
Over the past two years, IMC Companies has seen detention and demurrage charges escalate exponentially, and as a result have advocated for change to the regulations that govern the US supply chain. We have worked with many of you to challenge these exorbitant costs. Together, we’ve spent countless hours combatting unfair charges and working towards more fluidity. Today we celebrate the passage of the Ocean Shipping Reform Act.
Now law, OSRA represents the largest change to the Ocean Shipping Act in the last two decades. It will ultimately support our shippers with focus on compliance from ocean carriers and terminals for reasonable practices on demurrage and detention. Here are some highlights:
- Included are strict requirements that are needed for detention invoicing, with the ocean carrier being required to list all fields. For exporters, this will also include Earliest Receiving Dates (ERDs). The burden of proof is on the ocean carrier to show that demurrage charges are not the result of unreasonable action on their part.
- For our inland customers moving on a marine through bill of lading, OSRA gives the opportunity for emergency intermodal (IPI) jurisdiction to the FMC. This is a positive direction as many inland ramps are experiencing significant congestion largely due to ocean carrier restrictions on chassis usage. IMC advocates for choice in chassis provisioning at inland rails. Read IMC’s Chassis CHOICE Statement HERE.
Aspects of OSRA took effect immediately, but those applying to detention and demurrage will be implemented through continued FMC rulemaking activity. The law requires the FMC to enact stronger regulations, strengthening their initial rules on detention and demurrage. This means that while we anticipate positive changes to the US supply chain, detention and demurrage charges will remain until such rules are implemented.
As your motor carrier, we are pleased with the passing of OSRA. We will continue to advocate for clear rules on detention and demurrage as well as Chassis CHOICE on behalf of our shipper community.
Posted: July 8, 2022