The Ocean Shipping Reform Act was passed this week on Capitol Hill. Below is more reaction to the bill’s passage:
NPPC SUPPORTS OCEAN SHIPPING REFORM ACT OF 2022
WASHINGTON, D.C., June 16, 2022 — The National Pork Producers Council (NPPC) attended today’s White House signing ceremony for the Ocean Shipping Reform Act of 2022 (OSRA). The newly enacted law will address longstanding supply chain and shipping port issues that have hampered exports of pork and other U.S. goods.
“NPPC commends President Biden for signing and Senators Amy Klobuchar and John Thune and Representatives John Garamendi and Dusty Johnson for their sponsorship of and leadership on the OSRA,” said Bryan Humphreys, NPPC’s chief executive officer. “I am honored to represent NPPC and America’s 60,000 pork producers to see this important legislation signed into law.”
For several years, U.S. exporters have been dealing with port challenges. Examples include aging infrastructure and shipping issues, such as excessive detention and demurrage fees charged to exporters and importers for using marine terminal space and shipping containers. U.S. exporters also have had shipments declined or canceled without notice.
U.S. pork is shipped to more than 100 countries, and last year, the U.S. pork industry exported more than $8 billion of products, which added $63 to the value of each hog marketed. The Agriculture Transportation Coalition, of which NPPC is a member, estimates that 22% of U.S. agricultural exports in 2021 were not delivered because of unreasonable shipping practices.
“Exports add significantly to the bottom line of each American pork producer,” said NPPC President Elect Scott Hays, CEO of Two Mile Pork, LLC, in Monroe City, Missouri. “Having more assurances that our products will reach their destination by addressing problems that have plagued our ports for years is a huge win for our industry.”
Dairy Commends Passage of Ocean Shipping Reform Act, Urges Swift Implementation
ARLINGTON, VA – The National Milk Producers Federation (NMPF) and U.S. Dairy Export Council (USDEC) applaud the signing of the Ocean Shipping Reform Act, S. 3580, by President Joe Biden. Following passage of the legislation by the House of Representatives earlier this week by a vote of 369-42, President Biden signed the bill into law today. The enactment of the Ocean Shipping Reform Act sets in motion a series of new rules and regulations regarding ocean carrier practices that the Federal Maritime Commission (FMC) must implement over the course of the next year.
The legislation was introduced in response to the vocal advocacy by NMPF, USDEC and other agricultural export and shipper organizations, as problems with effective ocean freight transportation worsened in 2021. Congressmen John Garamendi (D-CA) and Dusty Johnson (R-SD), and Senators Amy Klobuchar (D-MN) and John Thune (R-SD) introduced similar versions of the Ocean Shipping Reform Act in the House and Senate, which both passed speedily through their respective chambers.
“We are grateful to our congressional champions – Congressmen Garamendi and Johnson, and Senators Klobuchar and Thune – for their leadership in getting this legislation drafted, introduced and passed so quickly. The U.S. dairy industry has suffered many challenges in getting goods smoothly and reliably to export markets due in large part to problematic ocean carrier practices. These new rules will allow the FMC to better enforce reasonable behavior by the ocean carriers,” said Jim Mulhern, president and CEO of NMPF.
“Our members continue to face significant impacts due to international ocean shipping challenges. Just last year, that resulted in over $1.5 billion in increased export costs and lost opportunities. While we can’t restore those losses, we are very pleased that President Biden and our allies in Congress quickly recognized the urgency of these problems and put their support behind legislative solutions to crack down on unjustified shipping practices,” said Krysta Harden, president and CEO of USDEC. “We urge the FMC to implement these rules quickly and begin to conduct the new oversight, regulation and enforcement necessary to end the unfair and unreasonable ocean cargo practices that have impeded American dairy products from efficiently getting to their overseas customers.”
Both organizations called on the FMC to implement the rules as expeditiously as possible to support agricultural exporters in getting more products onto vessels in order to better address rising food security needs around the world.