Congestion blame game misses underlying causes
US Congress blames shipping lines and terminal operators with its newly passed bill, but the issue is not that simple.
WHAT to do when something goes wrong? Finding somebody to blame is an all too common response and one demonstrated by the US Congress's House of Representatives last week. The global supply chain has been disrupted by a range of factors but the House clearly thought it knew who was to blame.
It passed bill HR 4996, setting out "requirements for operating a shipping exchange involving ocean transportation in the foreign commerce of the United States:
- Prohibits ocean common carriers and marine terminal operators from retaliating or discriminating against shippers because such shippers have patronised another carrier, or filed a complaint.
- Requires the Federal Maritime Commission (FMC) to publish and annually update all its findings of false certifications by ocean common carriers or marine terminal operators and all penalties assessed against such carriers or operators.
- Requires ocean common carriers to adhere to minimum service standards that meet the public interest.
- Directs the FMC to establish rules prohibiting ocean common carriers and marine terminal operators from adopting and applying unjust and unreasonable demurrage and detention fees.
- Requires ocean common carriers to report to the FMC each calendar quarter on total import and export tonnage and the total loaded and empty 20-foot equivalent units per vessel that makes port in the US.
- Authorises the FMC to initiate investigations of an ocean common carrier's fees or charges and apply enforcement measures, as appropriate.
- Revises annual reporting requirements for the FMC on foreign laws and practices to include practices by ocean common carriers".
So the clear assumption was that shipping lines and terminal operators were to blame and bringing them to heel would sort everything out.
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