Tag: ocean shipping reform

NMPF, USDEC Push for Additional Supply Chain Relief Post-OSRA

Posted on by Theresa Sweeney

As the Ocean Shipping Reform Act (OSRA) takes effect and dairy supply chains continue to face turmoil, NMPF and partner organization the U.S. Dairy Export Council are seeking additional policy solutions while fostering cooperation with port authorities and other key supply chain players.

NMPF President and CEO Jim Mulhern and USDEC President and CEO Krysta Harden met July 7 with retired Army General Stephen Lyons, the new Ports and Supply Chain Envoy for the Biden Administration, to ensure the needs of U.S. dairy farmers remain a priority as OSRA, supply chain-relief legislation passed into law in June, is implemented and additional remedies are pursued, pressing him on a range of critical matters to ensure continued administration support solving supply chain issues.

NMPF also joined a coalition of 157 trade associations in urging the White House to provide support to parties locked in negotiations over a dock worker strike at West Coast ports. At issue is the expired contract between the International Longshore and Warehouse Union and the Pacific Maritime Association.  A work stoppage, lockout or slowdown would come at a disastrous time for ag exporters.

NMPF also engaged the U.S. President and CEO of Mediterranean Shipping Company (MSC) Fabio Santucci on a wide-ranging call on July 12 to discuss the export crisis from the perspective of shippers. The meeting was part of a broader effort to identify opportunities to improve relations with carrier lines, which also included a meeting with Orient Overseas Container Line (OOCL) on July 8. In both meetings, NMPF focused on the challenges members face in container availability, cancellations, delays and fees and emphasized the negative impact these challenges had on relationships with import markets.

On the legislative front, NMPF provided input into and endorsed the American Port Privileges Act, legislation proposed  June 28 that would require U.S. ports to give priority to ships carrying U.S. exports. The legislation, introduced by Reps. John Garamendi (D-CA) and Jim Costa (D-CA), builds on OSRA and offers preferential berthing access by moving vessels that load 51% or more by volume or weight of American exports to the front of the loading queue. It also incentivizes ocean carriers to make second-leg voyages to ports like the Port of Oakland, the largest U.S. port for dairy exports.

All this comes as supply chain challenges continue to cascade across shippers and port facilities. As of late July, the Port of Oakland was closed due to protests over a new California trucking law. Meanwhile, even though several of OSRA’s helpful provisions have taken effect — including robust detention and demurrage payment guidelines – following them has not been instant, with the Federal Maritime Commission reminding shipping carriers on July 22 that compliance is necessary.

In that environment, NMPF and USDEC continue to pursue additional ways to advance policy and shipping-sector solutions.

USDEC and NMPF Praise White House Announcement on Ocean Shipping Enforcement

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) commend President Biden for outlining a new initiative to assign Department of Justice (DOJ) attorneys and litigators to the Federal Maritime Commission (FMC) to jointly improve enforcement of the Shipping Act. The initiative also directs the DOJ to pursue further actions to increase competition in the ocean shipping industry.

NMPF and USDEC strongly endorsed these efforts as a means of promoting increased competition and better services for American dairy exporters from the ocean freight transportation system. Disruptions in the export supply chain have cost U.S. dairy shippers over $1.5 billion in 2021 due to reduced value, higher direct costs, and lost export sales.

“We are grateful to President Biden and his administration for bringing the Department of Justice and the Federal Maritime Commission together in a partnership to better enforce the Shipping Act and promote competition in the ocean carrier market,” said Krysta Harden, president and CEO of USDEC. “Laws that protect shippers are only as good as their enforcement. We urge the DOJ and the FMC to move swiftly in pursuit of steps that will help deter unreasonable ocean shipping practices that harm U.S. dairy exporters.”

“Throughout 2020 and 2021, American dairy producers and cooperatives have faced unprecedented challenges in moving dairy exports from plants to ships due in key part to the actions of the ocean carrier industry,” said Jim Mulhern, president and CEO of NMPF. “The last year has clearly shown that changes are needed to tackle the unreasonable power shipping vessel owners have over America’s agricultural exporters working hard to get their goods to foreign markets. U.S. dairy exporters have been forced to endure unfair practices, including last minute changes, increased costs, and other unwarranted charges and penalties. Effective enforcement of the Shipping Act is long overdue particularly as ocean carriers enjoy record profits.”

The White House also called on Congress to address the present antitrust immunity for the predominantly foreign-owned ocean shipping alliances. On Monday evening the House moved quickly to advance reforms in this area by introducing the Ocean Shipping Antitrust Enforcement Act (H.R. 6864), which would repeal certain antitrust exemptions for ocean common carriers. Introduced by Rep. Jim Costa (D-CA), Adrian Smith (R-NE), John Garamendi, (D-CA), and Dusty Johnson (R-SD). NMPF and USDEC expressed support for the legislation and urged further action by Congress to advance it.