Insights into OSRA

When the Ocean Shipping Reform Act (OSRA) was signed into law on June 16, 2022, it not only became a beacon that provided guidance for companies who felt they were being unfairly charged demurrage and detention (D&D) fees by carriers, it opened the door for cargo owners to have a more vocal advocate to fight those unfair charges imposed by carriers.

According to the White House Briefing Room, OSRA authorizes the Federal Maritime Commission (FMC) for fiscal years 2022-2025, creates a list of necessary and banned behavior for ocean carriers, requires the FMC to create rules related to certain fee assessments, creates a shipping register, and gives permission for the FMC to issue emergency order necessary common carriers to exchange information directly with shippers, rail, and truck carriers.

OSRA has declared carriers won’t be able to be as cavalier or as easily dismissive of claims made by small and medium sized companies whose survival depends on getting a spot on these shipments for a reasonable price.

The FMC will help force carriers to be more honest in their accounting and will perhaps be an incentive to change their behavior towards shippers. Creating equality across the board whether they are a large company or small could mean an economic boost for smaller companies, and make it so that they have a chance to grow. The FMC announced that these complaints, however, must be made after the ruling on June 16, 2022, and not before it was made into law.

Future Forwarding has always advocated for our clients and when we act as a freight forwarder or NVOCC, we keep the most accurate accounting of a container’s location, time out of the port or ramp, and whether or not there were issues which prevented the equipment’s return. Future Forwarding will stand with you to fight against these excessive fees. Should you have any questions regarding this or how we can help you in the future, please don’t hesitate to contact your Future Forwarding representative today.

Dockworkers on Strike in Germany

In the wake of a breakdown in negotiations between employers and the union, 12,000 dockworkers in the German ports of Bremerhaven, Wilhelmshaven, and Hamburg have gone on strike.

The workers’ demand is for a 14% increase including bonuses to offset inflation concerns and the offer for consideration from employers is a 12.5% increase to current pay, but over a two year span. Maya Schwiegershausen-Güth, ver.di’s chief negotiator, says they’re still ready to find a negotiated settlement, but not without a “real wage increase” for its members. She also said, “…against the background of the uncertain economic development the current offer was still insufficient.”

The Loadstar reports: “ The third ‘warning strike’ is the longest so far and will further aggravate port congestion at Hamburg’s container terminals where yard density already stands at an unproductive level of 90%. Moreover, ships idled in the German bight are stacking up with berthing delays, even before the stoppage, extending to up to 14 days.”

ZDS’s chief negotiator Ulrike Riedel rebutted that the action can no longer be called a warning strike. She went on to say that the strike has “damaged the international reputation and competitiveness of our ports and endangers the existence of many companies.” Although, one could argue it’s not the dockworkers’ responsibility to keep companies afloat. That responsibility rests solely on the shoulders of company leadership.

Carrier Maersk says they have “decided to observe a full stoppage for rail, road and ocean freight for both import and export across our German terminals for the duration of the planned strike.”

Some carriers may be able to transload cargo from other ports, but congestion is already an issue at most alternative ports as well.

Head of Kiel Trade Indicator Vincent Stamer says, “There is currently no end in sight to the congestion in container shipping. This is very unusual for the North Sea, while long queues off Shanghai have also been observed in the past, for example.”

Even after a settlement is reached, it’s going to take some time to untangle this supply chain snarl, especially with the already stifling port congestion as a contributing factor.

Month: July 2022

Insights into OSRA

Dockworkers on Strike in Germany

U.S. Head Office

U.S. Legal

U.K. Head Office

U.K. Legal