Senate Bill Would Authorize Several FMC Supply Chain Recommendations
A Senate bill would authorize several recommendations recently made by the Federal Maritime Commission to address issues in the international freight delivery system, including unfair detention and demurrage fees. The bill, introduced last week, would also seek to standardize shipping terminology among port users and require the government to produce more statistics on equipment dwell times.
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The Facilitating Relief for Efficient Intermodal Gateways to Handle Transportation (FREIGHT) Act would “benefit the transportation network by supporting efforts to move freight without requiring burdensome government regulations,” said Sen. Roger Wicker, R-Miss., who introduced the bill along with Sens. John Thune, R-S.D., Marsha Blackburn, R-Tenn., Shelley Moore Capito, R-W.V., Jerry Moran, R-Kan. and Todd Young, R-Ind.
Several provisions would authorize FMC recommendations issued in July to better settle disputes between shippers and ocean carriers (see 2107290021). If passed, the bill would authorize more reparations for shippers that successfully show that a carrier or marine terminal operator violated detention and demurrage rules. The senators said “affected parties” could receive “up to twice the damages done to them” for violations of detention and demurrage policies. The bill would also allow the FMC to order a refund from a carrier or terminal operator in addition to imposing a civil monetary penalty.
Other provisions would expand the list of entities that are protected from retaliation against carriers, add seven positions to the FMC’s oversight offices and require the commission to work with the Transportation Research Board to develop best practices for chassis pools. Another measure would allow the FMC to require ocean carriers and terminal operators to share information “relevant to the movement of goods” if that information would help freight move faster.
Other provisions would aim to improve port efficiency. One measure would establish a Department of Transportation grant program for “port-related stakeholders” to “standardize the terms they use in their documents and operations, or how they communicate about moving freight with stakeholders,” the lawmakers said. Another measure would require the Bureau of Transportation Statistics to produce statistics on equipment dwell time, which would show how long intermodal equipment, such as chassis and containers, are in use or being repaired.
Blackburn said the bill will “improve transparency and accountability at all steps in the supply chain” and help shippers “cut through unnecessary” regulations. “This legislation would help relieve the strain by improving the movement of freight and alleviating a number of the challenges that have significantly affected transportation of goods and commodities,” Moran added.