SSGA applauds Senate passage of Ocean Shipping Reform Act

The Specialty Soya and Grains Alliance applauds the United States Senate for passing its version of Ocean Shipping Reform Act.  

The bipartisan bill, co-sponsored by Sens. Amy Klobuchar (D-Minn.) and John Thune (R-S.D.), was passed by unanimous consent on Thursday. It would provide the Federal Maritime Commission with new, additional enforcement authority, ensure a more competitive global ocean shipping industry and provide relief to U.S. exporters, including SSGA-member agricultural exporters, who have struggled with significant supply chain disruptions over the past two years.

“Our members and others have been waiting for the hope of relief,” SSGA Executive Director Eric Wenberg said. “We have been consistently messaging that we’ve needed it, and we thank Sen. Thune and Sen. Klobuchar for their leadership on this matter. We believe in the Federal Maritime Commission’s ability to act on behalf of U.S. companies, and this reform will give FMC the tools it needs.” 

The U.S. House of Representatives passed its version of Ocean Shipping Reform Act in December. The bill now goes to conference committee to work out differences between the two bills.  

“This needs to pass the House and Senate conference with speed so a workable bill that provides relief gets sent to President Biden’s desk as soon as possible,” Wenberg said. 

The Senate bill provides FMC with additional enforcement tools to address unreasonable and unfair ocean carrier practices that have been harmful to U.S. exporters, including prohibiting carriers from unreasonably declining opportunities to U.S. exports. 

In a statement, Thune said, if passed, the act “would level the playing field for American farmers, exporters and consumers by making it harder for ocean carriers to unreasonably refuse goods that are ready to export at U.S. ports.” 

Added Klobuchar: “Congestion at ports and increased shipping costs pose unique challenges for U.S. exporters, who have seen the price of shipping containers increase four-fold in just two years, raising costs for consumers and hurting our businesses.” 

SSGA has supported passage of the Ocean Shipping Reform Act and was among the first groups to sound the alarm on the supply chain crisis in October 2020 and has continued to work on behalf of its members who export high-quality, Identity Preserved grains and oilseeds to help them meet the needs of their overseas customers. 

Lack of service, carrier cancelations, delays and rising freight rates and fees have “reached a condition critical situation,” said SSGA Chairman Rob Prather, chief strategic ambassador for Iowa-based Global Processing, affected business and have had a human toll, as well, causing hardships to logistics staffs, farmers, truckers, suppliers and customers both in the U.S. and abroad. 

“This isn’t just a global supply chain issue; it’s a global food supply security issue,” Prather said.