The New York Times in October admitted that until recently, it did not have a beat for shipping and logistics. Apparently, the industry has now become “news that’s fit to print,” and that is good and bad.
The current state of congestion and frustration has produced a string of front-page zingers. It is disheartening to see a stack of containers next to the headline “Inside America’s Broken Supply Chain,” or to watch TV pundits worry over whether shipping and logistics operators have become the Grinch that would steal Christmas. It’s also curious that few recognized the industry as Santa in years past.
The change in reputation came quickly. Not long ago, mariners, longshoremen, truckers, and warehouse workers were regarded as frontline heroes in the fight against COVID-19. This presented an opportunity to use the well-earned reputational capital and shine a positive light on the many actors in global supply chains. Now, with ships and containers backed up and shelves looking bare, political adversaries have set their sights on ocean carriers, which they denounce as “foreign” despite shipping lines’ significant US employment and investments.
The Biden administration’s executive order on competitiveness, which called out consolidation in ocean shipping, challenges to the long-held understanding of “merchant” in bills of lading, and increased FMC scrutiny of detention and demurrage practices have all rolled forward. They are having an effect that will continue into 2022, and possibly beyond.
The Ocean Shipping Reform Act of 2021 embodies the prevailing mindset in Washington and would have a profound and long-term impact. Ripple effects are possible, and shipping and logistics companies should review their related policies and procedures as a precaution.
Ocean carriers once benefited from antitrust protections, but the tables have turned. In this new era of antitrust activism, the risk is that trustbusters may see an opportunity to reshape an industry that left too few gifts under the tree.