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27 June 2022 The on-line newspaper devoted to the world of transports 10:59 GMT+2

June 14, 2022

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Original news
The Ocean Shipping Reform Act 2022 awaits only the signature of the US President Biden

The World Shipping Council said it was "stunned of the continuous misrepresentation of the sector by the representatives of the United States Government'

Yesterday the House of Representatives of the US Congress approved the Ocean Shipping Reform Act of 2022, a bill already approved by the Senate which, among the various provisions, increases the powers of the Federal Maritime Commission (FMC) and prohibits shipping companies, terminal operators and maritime transport intermediaries to refuse unjustifiably to loaders load spaces, if available, and to resort to other discriminatory methodologies. The American president has more it has been said that the draft legislation will have the power to avoid an excessive increase in the value of sea freight: "the lowering of prices for Americans - he said yesterday Joe Biden commenting on the green light of the House - represents my top priority and I congratulate Congress on have passed the Ocean Shipping Reform Act on a bipartisan basis, which will help reduce costs for traders, American farmers and consumers." "In my State of the Union address - Biden recalled referring to his report to the Congress held last March ( of the 1st March 2022) - I invited the Congress to deal with the high tariffs and unfair practices of maritime carriers given whereas the increase in the costs of maritime shipments represents a an important factor contributing to the increase in costs for American families. During the pandemic - Biden denounced - the shipping companies have increased their fares by up to 1,000% and, all too often, these sea carriers refuse to embark American exports to Asia, starting rather with empty containers. This is costing a lot of money to the farmers, breeders and our economy. This drawing of law - said the US president - will allow steps forward by reducing costs for families and ensuring fair treatment for American businesses, including farmers and breeders. I can't wait - concluded Biden that shortly, with his signature, will convert the Ocean Shipping Reform Act into law - to sign it in order to transform it into law.'

The World Shipping Council (WSC), the association it represents the world's leading shipping companies operating services of line and which are therefore the specific object of the accusations of Biden - rejected to the sender, without mentioning him, the criticisms of the American President. Specifying that you can't wait to start a fruitful discussion with the Federal Maritime Commission on the implementation of the Ocean Shipping Reform Act, the association highlighted that "during the Covid-19 pandemic the shipping companies have gone out of their way to keep goods in enlivened, deploying every ship and every container available, increasing departures and investing for the future. In 2021 - ha remembered the WSC - carriers ordered a record number of 555 ships worth $42.5 billion and another 208 ships for a value of 18.4 billion dollars were ordered from the beginning of 2022. But - took over the association that has always charged the cause of the increase in costs to the malfunctions of the land supply chain - as long as ports, terminals Railway and American warehouses will continue to be congested and unable to cope with the increase in the level of trade, ships will remain locked out of ports at the expense of importers and exporters'.

Almost not understanding why the administration Biden continues to accuse shipping companies containerized to have artificially acted with the aim of raising considerably the value of sea freight, despite a few days makes the federal maritime commission itself find that the regime in which the maritime carriers operate is of absolute competition ( of the 1st June 2022), the World Shipping Council said 'stunned by the continuing misrepresentation of the sector by representatives of the United States Government and concerned about the disconnect between real data and rhetoric incendiary'.

"The 22, and not nine, international companies that serve the American people, industry and government in trade between Asia and the United States - continued the WSC referring to the number of nine companies grouped into three consortia cited by Biden who according to the Mr President, as you reiterated last Friday on the occasion of a visit to the port of Los Angeles, would be responsible for having raised their rates up to +1,000% - they are part of the supply world chain that has built this nation by importing and exporting food, medicines, electronics, products chemicals and everything we depend on. The increase in levels of the tariffs we have witnessed in recent years - has reaffirmed the association of shipping companies - depends on a demand that has far exceeded supply and congestion on land, exacerbated by dysfunctions caused by the pandemic. The recent Fact Finding 29 survey conducted in the last two years by the US Federal Maritime Commission - highlighted the WSC referring to the results of the investigation made known last June from the FMC - it came to the same conclusions: "our markets - specified the WSC citing the results of the survey - are competitive and the rates high of maritime transport were determined by a demand without consumer background, mainly in the United States, which has overwhelmed the supply of capacity of ships. Congestion led to a further contraction in capacity available"'.

'As long as import congestion is not solved - explained the World Shipping Council - congestion of exports will persist'. 'Carriers seafarers - concluded the association - continue to move record volumes of goods and have invested heavily in new capacity. America must make the same commitment and invest in its logistic infrastructure on the ground'.

The National Retail Federation (NRF), the powerful association of the U.S. trade, on the other hand, expressed satisfaction with the Congress gives the green light to the bill: "adoption of the Federal Ocean Shipping Reform Act - underlined the Senior Vice President for Government Relations of the association, David French - helps to address the long-standing systemic supply chain problems and dysfunctions of the ports that existed well before the pandemic, providing the Federal Maritime Commission the additional powers it needs. In addition offers essential updates to the international system of maritime transport which has been severely affected by the Covid-19».

"These improvements - concluded French - come in a time when inflation reached a 40-year high. NRF supported the effort to get Ocean Shipping through Reform Act, as one of the steps needed to put a brake on inflation and alleviating the pressure on businesses on American workers and consumers."

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