The Passing of the US Ocean Shipping Reform Act 2022 in Congress looks set to open a chapter of conflict with the world's shipping lines. Heralded by shippers and condemned by liner firms.
Ahead of his signing off on the Act, US President Biden once again repeated recent tropes regarding a 1,000% increase in freight rates and a mistaken belief that just nine liner firms serve on the Asia-US trade lanes. Refusal of carriers to carry US exports to Asia was another accusation.
“Lowering prices for Americans is my top priority, and I applaud the Congress for passing the Ocean Shipping Reform Act on a bipartisan basis, which will help lower costs for American retailers, farmers and consumers,” the President said.
Observers have suggested that carriers are being used as scapegoats amidst a period of high inflation.
The National Retail Federation praised the move, stating: “These improvements come at a time when inflation has reached a 40-year high. NRF has championed the effort to pass OSRA as one of the steps necessary to Lower Inflation Now and ease pressure on American businesses, workers and consumers.”
The World Shipping Council strongly refuted allegations by US Government agencies:
“We are appalled by the continued mischaracterization of the industry by US government representatives, and concerned about the disconnect between hard data and inflammatory rhetoric. The 22 (not nine) international carriers that serve the American people, industry and government on the Asia – United States trade are part of the global supply chain that has built this country, importing and exporting food, medicine, electronics, chemicals, and everything else we depend on.”
It clarified that increased freight rates were down to demand outstripping supply and landside congestion, calling for a commitment to invest in landside logistics infrastructure.
“Until the import congestion is remedied, export congestion will persist. The World Shipping Council will continue to work with federal and state policymakers, as well as other parties, to pursue the necessary lasting solutions – such as continued investment in port infrastructure – that can have real impact in strengthening the intermodal transportation system that has supported the US economy through the pandemic,” WSC added.
Source: Hong Kong Maritime Hub
Source: Hong Kong Maritime Hub
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