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.

Considering the extraordinary activity that we have been experiencing in the Ports of Los Angeles and Long Beach over the past 16 months and given that projections that show no reduction in volumes on the horizon, your recommendation that PierPass revert to an incentivizing program is a sensible one.  Such a change can be expected to ease congestion during the peak hours, encourage off-peak use of the marine terminals by the trucking and shipping community, and bring the associated benefits not only to the cargo interests but also to the impacted local community.

DOT’s Notice requested information concerning important issues regarding the supply chain to assist the Department in preparing the report required by EO 14017. NITL strongly believes that the issues and recommendations identified in these comments filed on October 18, will further the administration’s policy of improving the freight transportation delivery network and the resiliency of U.S. company supply chains, thereby improving the economic activity that takes place in other sectors. Hence, NITL urges DOT to add the recommendations detailed in here to its supply chain report for the transportation industrial base.

The National Industrial Transportation League, as the voice of the shipper, is enthusiastic that the Surface Transportation Board is taking up the issue of first-mile/last-mile, aka local switching service of the freight rail industry.  We have long advocated that average train speed and terminal dwell, while important measures of railroads’ line haul service health, do not adequately measure the total supply chain impacts of freight rail service. 

Railroads’ operational touch points with customers occur at the industries and the docks.  Creating an industry standard for reporting on the first and final legs of rail movements will provide valuable insights to both the Board and rail customers regarding the impacts of rail transit on U.S. supply chains.  This greater visibility into the challenges shippers/receivers face during localized rail service will provide data that will help industries plan and drive higher reliability and accountability of the freight rail providers’ common carrier obligations.

Nancy O’Liddy
Executive Director
National Industrial Transportation League

WASHINGTON, September 13, 2021 – A coalition of 152 companies and trade associations representing U.S. importers, exporters, transportation providers and other supply chain stakeholders today submitted a letter of support to Congress endorsing the Ocean Shipping Reform Act of 2021.

The bipartisan legislation was introduced last month by Congressmen John Garamendi and Dusty Johnson and would update the Shipping Act to recognize the significant changes to the international maritime transportation system of the past two decades. U.S. companies, their workers and consumers rely on a global maritime transportation system to support their businesses and move goods through the supply chain. The proposed legislation is essential to bring critically needed system improvements that have been further highlighted during the global pandemic.

Statements from policymakers and business stakeholders:

Congressman Dusty Johnson (R-SD): “Foreign ocean carriers aren’t playing fair, and American producers are paying the price. It’s time for updated rules of the road. That’s what our bill does.”

Congressman John Garamendi (D-CA): “Foreign businesses’ access to the American market and its consumers is a privilege, not a right. California’s agricultural exporters and other businesses are willing to pay to ensure that American-made products reach key markets in the Asia-Pacific. In turn, companies looking to offload foreign-made products at West Coast ports must provide opportunities for American exports. Even during a global pandemic, trade must be mutually beneficial, and that is exactly what our bipartisan bill ensures.”

David French, Senior Vice President of Government Relations, NRF: “The supply chain ecosystem is instrumental to American retailers’ ability to deliver products across the country to customers each day. Now is the time for the Shipping Act to be modernized to address a 21^st century supply chain. We appreciate the efforts of Congressmen Garamendi and Johnson to address these complex challenges so many businesses currently face and encourage Congress to move fastidiously on this crucial legislation.”

Jennifer Hedrick, Executive Director, National Industrial Transportation League: “The National Industrial Transportation League is grateful to Congressmen Garamendi and Johnson for their recognition of the challenges that maritime exporters and importers are experiencing, and for their commitment to seeking practical and workable solutions to the myriad issues affecting the entire maritime shipping network. NITL provides its full endorsement of the Ocean Shipping Reform Act of 2021 and is pleased to see that it not only addresses current challenges, but also provides a framework for a more robust maritime supply chain for all stakeholders. NITL thanks Congressmen Garamendi and Johnson for their leadership in this area of significant importance to American businesses, consumers and the global economy.”

Peter Friedmann, Executive Director, Agriculture Transportation Coalition:

“Agriculture and forest products are our country’s largest ocean export. Yet, there is nothing we produce in ag/forest products that cannot be sourced elsewhere in the world. We are pleased that Congressmen Garamendi and Johnson and over 140 members of Congress recognize that unless U.S. agriculture exporters can deliver affordably and dependably, our foreign customers will shift to other global suppliers. The Agriculture Transportation Coalition and our members in all 50 states are committed to build broad House and Senate support for OSRA21, even as we seek and support Federal Maritime Commission intervention, and as we engage with ocean carriers, ports, terminals, labor and truckers to find and implement solutions.”

The coalition aims to continue building support for the bill and Congressional passage this year. The letter is accessible here.

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.

The National Industrial Transportation League (NITL), the nation’s
oldest trade association representing industrial freight transportation shippers, is calling on Congress to modernize the Shipping Act of 1984 after months of congestion at U.S. seaports and unprecedented disruption to the ocean shipping network. Click here to view the Press Release.

NITL is responding to the COVID-19 pandemic and has created a list of important resources and updates on federal and state activity. Click here for more details.

The National Industrial Transportation League joined dozens of other trade groups to sign on to a letter to the Senate Finance Committee as it considers the surface transportation reauthorization bill. Among the letter’s requests are that the committee consider broad mechanisms for funding the bill, rather than putting the burden on the freight transportation industry. The full letter may be found here.

The National Industrial Transportation League filed comments on October 31st in response to the proposed interpretive rule on port demurrage and detention practices issued by the Federal Maritime Commission.

In September, the FMC issued final recommendations in its Fact Finding Investigation, which included a Notice of Proposed Rulemaking (NPRM) seeking comment on use of an interpretive rule to address detention and demurrage practices.

National Industrial Transportation League Executive Director Jennifer Hedrick issued the following statement today in response to the Surface Transportation Board’s release of a report on review processes and methodologies:

“The National Industrial Transportation League (NITL) welcomes the release of the report from the STB’s Rate Reform Task Force. We are pleased to see that the report offers recommendations for modifying the current rate review methodologies and processes, including decreasing the costs and complexities of bringing a rate case before the board.

Members of NITL thank the STB staff for their work on the report and Chairman Begeman for her commitment to rate reform. We look forward to analyzing the report and providing further comment upon review.”