There is considerable attention being paid to the supply chain right now. Let’s be candid…supply chain is interesting, and we are happy it is finally getting the due it deserves. Here is a snapshot of some of the more noteworthy things happening at the federal level:
Creation of a Federal Office of Multimodal Freight Policy. John Porcari, former White House Port Envoy, will continue his work to resolve systemic supply chain inefficiencies under this newly created umbrella. We look forward to working with you Mr. Porcari.
The Ocean Shipping Reform Act (OSRA) of 2022 was introduced in the US Senate last month. It is similar to the House version, which passed by a large margin last December. This legislation would regulate ocean carriers and terminal operators’ assessment of detention and demurrage charges as well as provide more structure and accountability to common carriers. You will not find us complaining about OSRA.
Federal Maritime Commission (FMC) weighs in on Pier Pass resulting in the reversal of course in Los Angeles and Long Beach. PierPass wanted to restore to their original plan of assessing high charges for dayside transactions while nightside transactions were free. Instead, they will revert to PierPass 2.0 where the fee was lowered and applied to all shifts. That is Oakland’s model, and it works well.
Department of Justice (DOJ) strengthens its relationship with the FMC. The DOJ will make anti-trust attorneys and economists available to the FMC, and the FMC will provide insight and expertise to the DOJ on the maritime industry. We are in favor of giving the FMC more teeth.
Federal Bureau of Investigation (FBI) and the DOJ are jointly investigating bad actors who have exploited the supply chain crisis for illicit gains. Admittedly, we are a bit curious who is in their crosshairs already.