The success of the Ocean Shipping Reform Act of 2022 (OSRA-22) will depend on US maritime regulators’ understanding of the real-world logistics challenges and systems through which cargo moves as it writes implementing regulations. These will need to be finely balanced to provide the proper guard rails in protecting against unreasonable practices while not creating unintended impediments to the flow of cargo.
In recent years, the Commissioners governing the key regulatory authority for ocean transportation — the Federal Maritime Commission (FMC) — have undertaken extensive outreach, including the notable fact-finding investigations on detention and demurrage and transportation data initiatives. Since 2021 with the establishment of the National Shipper Advisory Committee (NSAC), the FMC has gained an invaluable resource to craft effective regulations. This committee is composed of highly experienced individuals representing exporters and importers tasked by Congress to advise on policies related to the international freight delivery system. The law establishing the NSAC states that the FMC shall consult with and consider recommendations from the NSAC before taking any significant action.
It is hoped that these interactions at the top levels can percolate down and benefit all areas within the FMC. To manage the coming plethora of new regulation, the FMC has reorganized and expanded its enforcement structure. It would be useful if the FMC developed programs to inform and guide those involved with ocean transportation, thus ensuring a higher level of compliance. Both industry and the FMC would gain from educational cross-fertilization.
Regulations need to accommodate the continued evolution of international ocean shipping. This may be best accomplished by adhering to the intent of Congress as stated in the Shipping Act of 1984 and retained in OSRA 1998 and 2022 — that is for regulations to be formulated “with a minimum of government intervention and regulatory costs.”