We, the undersigned associations, appreciate the Biden-Harris Administration’s continued focus on addressing the disruptions facing our nation’s supply chain. To ensure today’s challenges to continued operational fluidity are not compounded, we implore your early and persistent engagement in the impending contract negotiations between the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU). A timely and satisfactory resolution that advances the needs of both the workers and the ports is imperative to avoiding further backups, delays, and higher costs.
Archive for News – Page 5
On behalf of the undersigned companies and trade associations representing U.S. importers, exporters, transportation providers and other supply chain stakeholders, we are writing to express our strong support for the Ocean Shipping Reform Act of 2022 (OSRA22) (S. 3580) which you have introduced. We believe the reforms included in OSRA22 will help address longstanding, systemic supply chain and port disruption issues which have been further exacerbated by the COVID-19 pandemic. The bill enjoys strong bipartisan support. We encourage the Senate to act quickly to pass the bill and reconcile the differences with the House version.
This testimony is presented in two parts. Part I challenges railroad arguments that the record is stale and needs updating by demonstrating that, if anything, developments over the past five years have strengthened the case for reciprocal switching. Part II responds to multiple topics that rail industry stakeholders have raised in ex parte meetings and their utter failure to rebut the facts and testimony presented in response to their objections to reciprocal switching. To minimize repetition of their previously submitted opening and reply comments in response to the Notice of Proposed Rulemaking,¹ the Coalition Associations have attached, as Exhibit 1, a single-page summary of their key arguments with cross-references to the opening and reply comments of The Shipper Coalition for Railroad Competition where the Board will find a detailed discussion.²
¹ Reciprocal Switching, Docket No. EP 711 (Sub-No. 1), slip op. (served July 27, 2016)
(“2016 NPRM”).
² The summary in Exhibit 1 also was distributed as a hand-out at each of the ex parte meetings between members of the Coalition Associations and individual Board members.
Washington, DC, February 3, 2022. The National Industrial Transportation League (NITL), the nation’s oldest trade association representing industrial freight transportation shippers, applauds the introduction of the Ocean Shipping Reform Act of 2022 – OSRA22, by Senators Amy Klobuchar (D-MN) and John Thune (R-SD). NITL members continue to face substantial delays, costs, and business interruption with respect to cargo transported in the ocean delivery network. We strongly support the Senate’s leadership to modernize the Shipping Act to help address present day challenges.
The League was in the forefront of the efforts leading up to the 1998 amendments to the Shipping Act and looks forward to working with the Congress, the Federal Maritime Commission (FMC), and all industry stakeholders to address the critical challenges currently faced by importers and exporters and others by updating this important federal law.
“The overwhelming support of the White House and the bi-partisan support shown for competitiveness in the supply chain is a crucial step toward addressing systemic issues contributing to the chaos at U.S. seaports and unprecedented disruption to the ocean shipping network” said Nancy O’Liddy, NITL’s Executive Director. “While we made it through the Holiday rush, the ongoing ocean shipping turmoil has wreaked havoc on US exporters and importers, costing them billions in higher shipping costs, demurrage and detention charges, dwell fees and lost business and products.”
“The inability of US companies to timely access marine containers and chassis and secure sufficient vessel bookings to meet their business requirements has upended the ocean cargo shipping and delivery network. These unprecedented challenges exposed gaps in the current law governing ocean carrier services that are addressed by OSRA22. We are incredibly grateful to Senators Klobuchar and Thune and their staff for working closely with NITL to advance this significant legislation.” – NITL General Counsel – Karyn Booth.
“OSRA22 addresses many of the problems faced by the shipping community by modernizing the Shipping Act, not updated since 1998 despite tremendous changes to ocean shipping since that time. The League strongly commends the work being done by the FMC to ensure a healthy ocean transportation system. We believe the agency and the shipping industry will benefit from these reforms that are targeted to address the challenges that confront importers and exporters in 2022,” said Lori Fellmer, Chair of the League’s Ocean Transportation Committee.
In addition to Senators Klobuchar and Thune, NITL thanks Senators Tammy Baldwin, D-WI, John Hoeven, R-ND, Debbie Stabenow, D-MI, Roger Marshall, R-KS, Richard Blumenthal, D-CT, Todd Young, R-IN, Mark Kelly, D-AZ, Cory Booker, D-N, Gary Peters, D-MI, Jerry Moran, R-KS, Marsha Blackburn, R-TN, Joni Ernst, R-IA and Catherine Cortez Masto, D- NV, by being original cosponsors further demonstrating the bi-partisan support for this vital effort.
NITL looks forward to swift passage in the U.S. Senate followed by prompt conference negotiations to iron-out certain differences between this bill and the Ocean Shipping Reform Act of 2021, H.R. 4996, passed by the U.S. House of Representatives on December 8, 202 and sent over as an Amendment to the America Competes Act on February 1, 2022 by Garamendi, Johnson, Costa, Valadao, Schrier, and Rodney Davis. NITL will collaborate with the House and Senate members chosen to be involved in these discussions to help them reach common ground and find a vehicle to move the final bill to passage as soon as possible. Relief is essential for US importers, exporters, and consumers affected by the broken ocean shipping supply chain.
******************************************************************************
About NITL:
The National Industrial Transportation League (NITL) is a trade association whose mission is to advance the views of shippers on industrial freight transportation issues and advance their professional development. NITL membership is comprised of companies engaged in the rail, maritime, and highway industrial freight transportation sectors who are committed to the competitive, efficient, and safe movement of goods across the United States and beyond.
2021 for NITL was a year of challenges, transition, and even greater success as “the voice of the shipper.” In a Covid restricted environment, the League successfully held a virtual summit receiving high marks from both attendees and presenters. The League held many other webinars including a well-received educational series on Rail Operations. The willingness of our members and committees to adopt new remote technologies increased member participation and enhanced the League’s influence.
Guided by “true north” principals that focus on controlling or reducing shipper cost, increasing freight capacity and competition, assuring shipper choice, and reducing regulatory complexity, the League enhanced its position as a leader in DC on all things freight. Regulators, Agencies, Legislators and staff, and other trade associations look to the League for leadership and council. This has been a year where NITL has been intimately involved in every major freight discussion and is well positioned to continue building momentum in 2022.
Highway
- Continued to advocate that truck capacity be improved by increasing truck size and weight allowances on the National Freight Network.
- Filed comments with FMCSA supporting a rulemaking on Property Broker Transactions to keep shipper information and rates confidential.
- Advocated for shippers during the congressional debate on infrastructure, resulting in the Invest in America Act. (Kept interstate tolling at a minimum, established a pilot for commercial drivers under twenty-one, and included record highway spending.)
- Filed an amicus brief to have the Supreme Court hear challenges to CA AB-5 a CA law that would eliminate contractor truck drivers. SCOTUS will hear arguments in early January.
- Supported twin thirty-threes
As NIT League’s Chair of Highway, Jeff Tucker, Tucker Company Worldwide, Inc. states that there was ever a time where NITL can serve you professionally and represent your company’s interest, it is over this next decade. So many changes are in store, from climate to fuel to truck size and weight, potential government involvement in sourcing and critical infrastructure- related topics–it is impossible to keep it all straight. That is what NITL does for you, your career, and your company.
As a member of the NITL for 30 years, there have been one or two moments that might rival the importance of what we are about to witness in transportation and supply chain in the 2020s. NITL is your voice–your best voice, to tell Washington what you need to see happen. I congratulate NITL on our wins in 2021 and encourage every member to be even more involved. Involve your colleagues–your company–your executive leadership.
Rail
- Established close working relationship with new STB Chair and Members
- Advocated for renewed focus by STB on competitive switching (EP-711)
- Successful in getting STB to take a serious look at First mile – Last mile Service (EP-767)
- Supported EP-766 petition for new rulemaking on revenue advocacy.
- Led successful effort on Rail Detention and Demurrage billing requirements.
- At the center of discussions with merger participants and STB regarding proposed KCS merger with both CP and CN.
Ocean
- Leader in discussions on port congestion that resulted in White House Executive Order on increasing competition in rail and ocean freight transportation.
- Continue discussions with FMC regarding port congestion and unfair practices resulting in FMC guidance encouraging filing claims with the agency.
- In May, proposed changes (drafted by NITL GC Karyn Booth) to the Ocean Shipping Reform Act (OSRA) and established a working coalition to advance legislation in Congress. Ultimately resulted in introduction and overwhelming, bi-partisan passage of OSRA21 in the US House of Representatives in December. The Senate hopes to pass their version of HR 4996 in the next week, which NIT League has been working closely with to retain what was in HR 4996.
- Advocated that FMC formalize their Detention and Demurrage rules.
I welcome our new leadership, Nancy O’Liddy, Executive Director and Ann Warner, Lobbyist. I wish Randy Mullett all the best in retirement. We had a super busy strong year in 2021 and 2022 appears to be even more active, if possible. I thank all those who took time to make all these accomplishments happen along with a smooth administrative transition.
I welcome even more of you to get formally engaged in these processes by being active in one or more of the committees. They are your voice.
Thank-you and Happy New Year!!!!
Bruce Ridley, Chair of NIT League Packaging Corporation of America
In a letter from a group of port users and the ports of Long Beach and Los Angeles – NITL has joined in requesting expedited consideration of the West Coast Marine Terminals’ filing for the extension of the temporary adjustment to the Traffic Mitigation Fee (TMF).
You can find the full letter here : 2022-01-27 — Letter to FMC — Extension of Temporary Adjustment
The National Industrial Transportation League (NITL) has a legacy of advocacy for US shippers and works tirelessly to earn the label “The Shippers’ Voice Since 1907.” Our organization collectively and our members individually continue to contribute experience and expertise to the development of solutions that are so desperately needed to address the congestion problems in our ocean freight delivery system.
It is important to recognize, however, that the League’s May 2021 proposal that became part of HR 4996, the Ocean Shipping Reform Act of 2021 (OSRA21), was not designed to solve port bottlenecks. We have seen OSRA21 denigrated because it does not solve the critical congestion problems, but those criticisms are overlooking the very real but different concerns impacting US businesses that led to the League’s call for regulatory action to modernize the Shipping Act to address present-day challenges involving ocean carrier service and practices.
We have tremendous regard for the work being done by Federal Maritime Commission (FMC) Commissioner Rebecca Dye in her Fact Finding 29 and Commissioner Carl Bentzel in his data Initiative, as well as other public and private efforts under way throughout the industry to improve the ocean cargo delivery network. We have seen how bringing together the participants in the system can result in a fair and practical conclusion to what had been viewed as an overwhelming dilemma. The outcome of Fact Finding 28 that led to the FMC’s Interpretive Ruling on Demurrage & Detention was one such shining example. Unfortunately, it has also become the embodiment of how the agency’s articulation of likely unreasonable demurrage practices has not resulted in the performance of reasonable practices, as carriers continue to invoice millions of dollars in demurrage and detention under unreasonable circumstances when delays are beyond the control of the cargo.
For this reason, NITL supports the reforms outlined in OSRA21 that will require demurrage and detention charges to be consistent with their long-recognized purpose of incentivizing efficiencies in the ocean cargo delivery network. The FMC’s rule made clear that demurrage and detention may not be assessed when no efficiencies in cargo pickup or return of equipment will be achieved. OSRA 2021 simply requires codification of the FMC’s interpretation to improve carrier compliance and address ongoing unfair demurrage practices.
But OSRA21 is not just about demurrage and detention.
Since early 2021, League members have suffered the most extraordinary ocean freight rate increases in return for the most unreliable ocean carrier service on record. Ocean carriers are declining booking requests at unprecedented levels, leaving businesses scrambling to secure carriage for the products and materials needed to fill sales orders and meet production schedules. US supply chains have been put at risk with companies unable to anticipate when — if ever — their shipments will move. To make matters worse, many US businesses are often left no option but to obtain carriage on the spot market at rates that rise exponentially on a bi-weekly basis. In some instances, working outside of an agreed service contract with an ocean carrier has been necessary even though space commitments have not been satisfied in the contract. Although contract breaches are reserved for the courts, OSRA21 would require a common carrier to engage in “just and reasonable practices” with respect to service contracts.
US businesses harmed in current environment
US importers and exporters depend on timely access to equipment and vessel space to meet their production and delivery requirements, as well as customer and consumer demand. These critical ocean service needs have not been adequately satisfied and allocations have been inconsistent and unpredictable. Further, agricultural and other exporters have expressed concerns that ocean carriers are transporting increasing levels of empty containers back to Asia to maximize their profits in the eastbound trade, while denying them access to boxes and vessel space to meet their business demands in overseas markets.
In response, OSRA21 provides increased oversight of container and vessel space allocation to prevent unreasonable practices and stipulates that a common carrier may not “fail to furnish … containers or other facilities and instrumentalities needed to perform transportation services, including allocation of vessel space accommodations, in consideration of reasonably foreseeable import and export demands.” OSRA21 also specifies that a common carrier may not “unreasonably decline export cargo bookings if such cargo can be loaded safely and timely … and carried on a vessel scheduled for the immediate destination of such cargo.”
For the US importer who managed to secure carriage for their goods — even if at inflated spot rates — the service problems did not end. Schedule delays, voyage cancellations, and port bypasses resulted in delayed arrivals to port. And additional delays followed while containers booked to move inland by rail under the terms of the ocean bill of lading sat on the piers for weeks before moving toward their destinations.
OSRA21 would address these sort of service problems by requiring the FMC to initiate a rulemaking proceeding to include the “duty to perform the contract of carriage with reasonable dispatch” and a “requirement of ocean common carriers to establish contingency service plans to address and mitigate service disruptions and inefficiencies during periods of port congestion and other market disruptions.” Clarifying a “reasonable” standard for common carrier service and focusing on advance contingency planning would help to identify what minimum level of service is required meet the needs of the shipping public and to mitigate harms such as those caused by severe port congestion.
In the early part of 2021, concerns about unreasonable practices faced by importers and exporters continued to grow in number and breadth, leading to the recognition that the current Shipping Act, last updated over two decades ago, does not specifically address current day challenges and that the “reasonableness” that US businesses deserve from the ocean delivery system would not be reached voluntarily. These ongoing unprecedented challenges have left US businesses unable to rely on the essential ocean freight delivery system that is integral to their supply chains and, quite possibly, to their sustainability.
More than 20 years ago, the Ocean Shipping Reform Act of 1998 made regulatory changes that were appropriate for the time. In today’s environment where three alliances control more than 80 percent of the ocean capacity to and from the US and where global trade is the lifeblood to so many US businesses, the Ocean Shipping Reform Act of 2021 seeks to update the ground rules for reasonable practices for the protection of US businesses who depend on efficient and competitive ocean transportation. There is no doubt that one byproduct of having those guidelines in place will be the ability for US businesses to operate more efficiently. The enhanced predictability of cargo movement that would naturally result from more reasonable practices might just contribute to lessening some of the congestion problems as well.
Contact Lori Fellmer at [email protected].
NITL Applauds House Passage of the Ocean Shipping Reform Act of 2021 (HR 4996)
Washington, DC, December 8, 2021. The National Industrial Transportation League (NITL), the nation’s oldest trade association representing industrial freight transportation shippers, applauds the overwhelming support shown in passage of the Ocean Shipping Reform Act of 2021 (OSRA21) by the US house of Representatives. The final vote this evening was 364 voting yea and only 60 voting in opposition.
The League was instrumental in the efforts leading up to the 1998 amendments to the Shipping Act and looks forward to working with the Congress, the FMC, and all industry stakeholders to address the critical challenges faced by importers and exporters and others by updating this important federal law.
“The overwhelming, bi-partisan support shown for modernizing the Shipping Act of 1984 is an important step toward addressing systemic issues contributing to congestion at U.S. seaports and unprecedented disruption to the ocean shipping network” said Nancy O’Liddy, NITL’s Executive Director. “The ongoing ocean shipping turmoil has wreaked havoc on US exporters and importers, costing them billions in higher shipping costs, demurrage and detention charges, and lost business.”
“The inability of US companies to timely access marine containers and chassis and secure sufficient vessel bookings to meet their business requirements has upended the ocean cargo shipping and delivery network. These unprecedented challenges exposed gaps in the law governing ocean carrier services that are addressed by OSRA21. We are very grateful to Representatives Garamendi and Johnson (the bill’s original sponsors) and their staff’s for advancing this important legislation.” – NITL Ocean Transportation Committee Chair Lori Fellmer.
“OSRA21 addresses many of the problems faced by the shipping community and seeks to address gaps in the current law. While the League strongly commends the regulatory efforts in recent years initiated by the FMC, we believe the agency and shipping industry will benefit greatly from these reforms that are targeted to address the challenges of 2021,” said Fellmer.
NITL has been working with members of the US Senate on companion legislation and will now turn its full focus on encouraging them to take similar action, as soon as possible, to bring relief to US importers, exporters, and consumers affected by the broken ocean shipping supply chain.
******************************************************************************
About NITL:
The National Industrial Transportation League (NITL) is a trade association whose mission is to advance the views of shippers on industrial freight transportation issues and advance their professional development. NITL membership is comprised of companies engaged in the rail, maritime, and highway industrial freight transportation sectors who are committed to the competitive, efficient, and safe movement of goods across the United States and beyond.
We, the undersigned coalition of associations representing agriculture, foodservice, trucking, warehousing, manufacturing, retail, construction, energy, and other key supply chain stakeholders, call on the Biden Administration to work with our industries to address the immense challenges impacting our nation’s supply chain. While we represent different industries, we share the common burden of current supply chain disruptions, which are driving up prices and leading to a growing shortage of goods in the United States, with the holidays just around the corner.
On behalf of the National Industrial Transportation League (“NITL”), I am writing to you regarding significant concerns of our members regarding the new Container Excess Dwell fees recently adopted by the Ports of Los Angeles and Long Beach. These fees are intended to be assessed against ocean carriers, but some carriers intend to pass the fee through to their importer customers. The fee is designed to address the unprecedented congestion at the ports and to incentivize the prompt removal of loaded containers within the designated time-period.
2023 MEMBERSHIP DIRECTORY
