President Biden signed the Ocean Shipping Reform Act (OSRA) 2022 into law on Thursday, June 16th. It is the first major overhaul of the act in two decades and had tremendous support in both the US Senate, who approved unanimously, and the House, who passed on a 369-42 vote.

OSRA prohibits ocean carriers from “unreasonably” refusing export cargo as well as assessing “unreasonable” demurrage and detention (D&D) fees. What is “unreasonable” D&D? It is fees that are assessed in circumstances that are beyond the control of the cargo owner.

OSRA puts teeth behind the Federal Maritime Commission’s (FMC) interpretive rule on D&D which was established in May of 2020 and empowers the FMC to be the watchdog and enforcement arm of OSRA.

Since the FMC had a rule in place covering the assessment of D&D, OSRA grants its immediate enforcement. Therefore, should an ocean carrier not abide by the interpretative rule, a complaint can be filed with the FMC and, should the ocean carrier be found in violation, penalties and reimbursements will be imposed.

Additionally, demurrage and detention invoices much include specific information and provide assurances the charges were not the result of the carrier’s action…rolled bookings, change to receiving dates, no empty return locations, etc.

Latest News

SEEING RED

There has been quite a bit of talk about red-dye diesel. For those not in the weeds like we are, red-dye diesel is exempt from highway excise taxes and is intended for farm and off-road usage. It operates exactly the same as on-road diesel but is dyed red to make it...

TARIFF UPDATE

-The bi-lateral truce between the US and China on ship fees, which was set to expire on November 9, 2026, has been extended until January 10, 2027. -However, a $200,000 per voyage port fee is being considered on Spanish-flag vessels in retaliation for Spain denying...

NY/NJ TRUCKERS SAY NO

The Association of Bi-State Motor Carriers representing truckers in New York and New Jersey have filed an official request for a rulemaking with the Federal Maritime Commission (FMC). The request seeks the FMC to establish guardrails and responsibilities regarding the...

SAFETY FIRST

A BIG congratulations to Devine drivers, Chuck Baldwin, Craig Lemay and Alan Garton for being recognized for their safe driving and earning Driver of the Month awards by the Nevada Trucking Association. Another BIG congratulations to Devine's Fleet team for winning...

ARCH TURNS 100

The Reno Arch turned 100 last month. In its 100-year history, there have been three different versions of the arch. The first arch was constructed in 1926 and was intended to be temporary to celebrate the completion of Lincoln and Victory Highways which converged in...

Share This