SIMIC

Beneficial cargo owners and non-vessel operators at US terminals have vociferously raised issues that have hobbled supply chains, which the OSRA 22 seeks to address, but with contract negotiations between the unions and terminal operators due to start on May 12, more disruption could be on the way, reports UK's The Loadstar.

However, International Longshore and Warehouse Union (ILWU) president Willie Adams remained upbeat.

"We're optimistic about negotiations and looking forward to sitting down with the employers. The union and the employers sat down early on in the pandemic and negotiated pandemic protocols that allowed the cargo to keep moving. We are proud of the ILWU's record-breaking results in the most difficult of times, and we believe we will get a fair agreement that protects the safety and wellbeing of these incredible workers."

But while union representatives are optimistic about contract negotiations the shipping lines views on the developing legislation has not matched that optimism, with the carriers believing they are being blamed for supply chain issues that are not of their making.

As a result, shipping lines have railed against OSRA 22, claiming the legislation will "up-end" the global system for shipping cargo and see a worsening of the services offered to US importers and exporters.

John Butler, president and CEO of the World Shipping Council (WSC), said: "It is disappointing that unfounded allegations are being levied against an industry moving more cargo now than at any time in history in order to meet the unprecedented demand for imported goods during the pandemic."

Meanwhile, shippers' representatives have lauded the new legislation, the National Industrial Transportation League (NITL) saying it will bring shipping regulation into line with the major changes that have occurred in the industry.

The NITL argues that its members have continued to suffer delays and business interruptions, leading to increased costs and deteriorating service levels.

"We strongly support the Senate's bi-partisan leadership in modernising the Shipping Act to help address present day challenges. This commitment, combined with continued support of the White House and the House of Representatives, is a crucial step toward addressing systemic issues contributing to the challenges at US seaports and unprecedented disruption to the ocean shipping network." it said.

This major revision to US shipping law, the like of which has not been seen since 1998, will, the WSC says: "Reduce the service to US importers and exporters and raise costs for American consumers and businesses."

Shippers, on the other hand, believe the revision of OSRA 22, is "essential for US importers, exporters, and consumers affected by the broken ocean shipping supply chain".