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US draft legislation seeks to update OSRA-22
Lawmakers are drafting new legislation that would update some aspects of OSRA-22. One change includes publicizing penalties imposed on marine terminals and ocean carriers as a result of shipper complaints. The legislation also aims to draw a sharp line on the involvement of China-based entities in US shipping.
The draft bill is named the Ocean Shipping Reform Technical Act of 2023. It would heighten transparency into regulatory penalties against ocean carriers and MTOs by ordering all sanctions to be publicly posted online.
Under OSRA-22’s current process, the FMC only publicizes certain cases. Additionally, many cases are settled confidentially. The new bill would call more attention to all complaints made against carriers and terminals. It would also publicize the course of action taken by regulators.
The draft bill also calls for the creation of a National Seaport Advisory Committee appointed by the FMC. The committee would consist of 16 port authority representatives and eight MTOs. It would help the agency monitor ongoing industry issues.
The draft bill would heavily limit China-based entities and their ties with US shipping. The bill seeks to ban all US port authorities from receiving federal funding if they use the China-sponsored National Transportation Logistics Public Information Platform (LOGINK).
Lastly, the bill reiterates the need to add ocean carriers that are owned by the Chinese government to the FMC’s list of controlled carriers.
US chassis market nearing equilibrium after shortages
The chassis market should reach an equilibrium by midyear due to muted US port volumes and new chassis coming off assembly lines. According to chassis lessors, most of the 2022 chassis orders have been fulfilled. Additionally, they believe enough units should be available to supply the needs of shippers by June.
C&K Trucking said importers clearing out inventory in March will have a big impact on the timing of chassis supply and demand equilibrium. TRAC Intermodal believes that the market is already near equilibrium.
Milestone Equipment Holdings said chassis providers are using the equilibrium or near-equilibrium as an opportunity to prepare for the next import surge. Their president of chassis and containers said, “We’re going to make sure that when the business does turn around, there’s plenty of equipment ready to go.”
TRAC said the equilibrium gives the industry an opportunity to review the last two years, learn lessons, and apply them in the future. The company is focused on the long-term growth trends in port volumes rather than the short-term slowdown.
Another lesson is that truckers and shippers are no longer willing to rely exclusively on chassis pools. Truckers and BCOs are acquiring their own chassis to make the equilibrium between supply and demand less fragile in the future.
The FMC is taking on a landmark case that would eliminate rules that often prohibit truckers and shippers from using privately-owned chassis in merchant haulage agreements. The FMC recently ruled that ocean carriers cannot require the use of pool chassis on merchant haulage agreements when the bill of lading only covers the port-to-port move.
About O’Neill Logistics
O’Neill Logistics is a leading third party logistics provider. We operate in California, Savannah, New Jersey. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.
Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.
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