Freight News, Sea

AAFA Welcomes Introduction of Ocean Shipping Reform Act of 2021

[ August 27, 2021   //   ]

The American Apparel & Footwear Association welcomed the introduction of the Ocean Shipping Reform Act of 2021 (OSRA 21) in the House of Representatives on August 10. The bipartisan bill was introduced by Congressman John Garamendi (D-CA-3) and Dusty Johnson (R-SD) and would require the Federal Maritime Commission (FMC) to establish and enforce rules regarding minimum service requirements for shippers, respond to breaches of contracts, and address excessive and unjust detention and demurrage fees.

“The Ocean Shipping Reform Act addresses many issues that have been a thorn in the side of American business for years, and comes at a time when a shipping crisis is stymieing our nation’s economic recovery,” said Steve Lamar, president and CEO of the American Apparel & Footwear Association. “Thank you to Congressmen Garamendi and Johnson for their leadership on this issue and for supporting American businesses and American jobs. We encourage the House to quickly take this bill under consideration.

“This bill will go a long way in preventing future shipping crises. However, it will not be able to help American businesses that are struggling now due to the current, unprecedented shipping crisis that continues to spiral out of control. With this in mind, we urge the Biden administration to provide relief to American businesses now, by eliminating unnecessary and costly tariffs by renewing GSP and MTB and ending the China Section 301 tariffs. Further, we call on the Biden administration to bring all stakeholders to the table to find an immediate resolution to the current shipping crisis and to require the FMC to fulfill its oversight role to address price gouging and other malpractices.”

The apparel and footwear industry has been dealing with unprecedented supply chain disruptions as a result of COVID-19. AAFA sent a letter to President Joseph R. Biden on July 15, following a letter sent on June 15, outlining the impact the situation has had on the apparel and footwear industry. Find more on the issue with #ShippingCrisis.