MARKET BRIEF | December 2021
A BRIEF look at what’s happening in the logistics and shipping industry.
In this Edition:
House Passes Ocean Shipping Reform Act
Extended Dwell Fee Helping in Oakland
Backlog Easing in Savannah
House Passes Ocean Shipping Reform Act
Extended Dwell Fee Helping in Oakland
Backlog Easing in Savannah
HOUSE PASSES OCEAN SHIPPING REFORM ACT
The United States House of Representatives recently passed a bill — named the Ocean Shipping Reform Act (OSRA) — designed to strengthen shipping supply chains. The bill requires shipping companies to adhere to “minimum service standards that meet the public interest,” and blocks them from unreasonably declining cargo. The bill also calls for improved data collection and reporting practices through the creation of a shipping exchange registry. Additionally, the OSRA increases Federal Maritime Commission (FMC) funding by 10%, and directs them to release an annual report on shipping operators and marine terminal operators filing false certifications. “This legislation works to address unfair shipping practices by tackling the worst instances of abuse from bad actors in the shipping industry, in an effort to boost our country’s global competitiveness,” commented Kurt Schrader, representative for Oregon’s fifth congressional district. The bill was created to resolve frustrations with the supply chain that ocean carriers share, and fix the congestion that has levied a worldwide impact.
EXTENDED DWELL FEE HELPING IN OAKLAND
The removal of long-dwelling containers at the Port of Oakland’s largest marine terminal is already showing progress. This is just over a week after it implemented a surcharge for containers that remained for an extended period. A $50 per day fee begins on the eighth day, increasing to $75 on days 13-17, $100 on days 18-22, and $150 for day 23 and beyond. (Empty containers and laden export containers are not subject to the fee.) Other terminals within the port are planning to impose these fees. Also, ports in Long Beach, Los Angeles, Seattle, and Tacoma have either initiated, or will initiate, similar extended dwell fees.
BACKLOG EASING IN SAVANNAH
The number of vessels anchored outside of the Port of Savannah has been cut in half over the last three months. This is attributed to lower import dwell times and a rise in truck moves. And there is more relief coming. Port officials anticipate the addition of 400,000 TEU of capacity inside the Garden City Terminal (scheduled to be complete by the end of December) will cut the number of anchored vessels to a single digit. Much credit goes to the Georgia Ports Authority for outlining and executing a strategy to aggressively address vessel backlog, and restore fluidity to the supply chain.
The United States House of Representatives recently passed a bill — named the Ocean Shipping Reform Act (OSRA) — designed to strengthen shipping supply chains. The bill requires shipping companies to adhere to “minimum service standards that meet the public interest,” and blocks them from unreasonably declining cargo. The bill also calls for improved data collection and reporting practices through the creation of a shipping exchange registry. Additionally, the OSRA increases Federal Maritime Commission (FMC) funding by 10%, and directs them to release an annual report on shipping operators and marine terminal operators filing false certifications. “This legislation works to address unfair shipping practices by tackling the worst instances of abuse from bad actors in the shipping industry, in an effort to boost our country’s global competitiveness,” commented Kurt Schrader, representative for Oregon’s fifth congressional district. The bill was created to resolve frustrations with the supply chain that ocean carriers share, and fix the congestion that has levied a worldwide impact.
EXTENDED DWELL FEE HELPING IN OAKLAND
The removal of long-dwelling containers at the Port of Oakland’s largest marine terminal is already showing progress. This is just over a week after it implemented a surcharge for containers that remained for an extended period. A $50 per day fee begins on the eighth day, increasing to $75 on days 13-17, $100 on days 18-22, and $150 for day 23 and beyond. (Empty containers and laden export containers are not subject to the fee.) Other terminals within the port are planning to impose these fees. Also, ports in Long Beach, Los Angeles, Seattle, and Tacoma have either initiated, or will initiate, similar extended dwell fees.
BACKLOG EASING IN SAVANNAH
The number of vessels anchored outside of the Port of Savannah has been cut in half over the last three months. This is attributed to lower import dwell times and a rise in truck moves. And there is more relief coming. Port officials anticipate the addition of 400,000 TEU of capacity inside the Garden City Terminal (scheduled to be complete by the end of December) will cut the number of anchored vessels to a single digit. Much credit goes to the Georgia Ports Authority for outlining and executing a strategy to aggressively address vessel backlog, and restore fluidity to the supply chain.
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