Ocean Shipping Reform Act of 2022
An Act
To amend title 46, United States Code, with respect to prohibited acts by ocean common carriers or marine terminal operators, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SEC. 2. Purposes.
“(2) ensure an efficient, competitive, and economical transportation system in the ocean commerce of the United States;”
“(4) promote the growth and development of United States exports through a competitive and efficient system for the carriage of goods by water in the foreign commerce of the United States, and by placing a greater reliance on the marketplace.”
SEC. 3. Service Contracts.
“(9) any other essential terms that the Federal Maritime Commission determines necessary or appropriate through a rulemaking process.”
SEC. 4. Shipping Exchange Registry.
“§ 40504. Shipping exchange registry
“(a) In General.—No person may operate a shipping exchange involving ocean transportation in the foreign commerce of the United States unless the shipping exchange is registered as a national shipping exchange under the terms and conditions provided in this section and the regulations issued pursuant to this section.
“(b) Registration.—A person shall register a shipping exchange by filing with the Federal Maritime Commission an application for registration in such form as the Commission, by rule, may prescribe, containing the rules of the exchange and such other information and documents as the Commission, by rule, may prescribe as necessary or appropriate to complete a shipping exchange’s registration.
“(c) Exemption.—The Commission may exempt, conditionally or unconditionally, a shipping exchange from registration under this section if the Commission finds that the shipping exchange is subject to comparable, comprehensive supervision and regulation by the appropriate governmental authorities in a foreign country where the shipping exchange is headquartered.
“(d) Regulations.—Not later than 3 years after the date of enactment of the Ocean Shipping Reform Act of 2022, the Commission shall issue regulations pursuant to subsection (a), which shall set standards necessary to carry out subtitle IV of this title for registered national shipping exchanges. For consideration of a service contract entered into by a shipping exchange, the Commission shall be limited to the minimum essential terms for service contracts established under section 40502 of this title.
“(e) Definition of Shipping Exchange.—In this section, the term ‘shipping exchange’ means a platform (digital, over-the-counter, or otherwise) that connects shippers with common carriers for the purpose of entering into underlying agreements or contracts for the transport of cargo, by vessel or other modes of transportation.”
“40504. Shipping exchange registry.”.
SEC. 5. Prohibition on Retaliation.
“(d) Retaliation and Other Discriminatory Actions.—A common carrier, marine terminal operator, or ocean transportation intermediary, acting alone or in conjunction with any other person, directly or indirectly, may not—
“(1) retaliate against a shipper, an agent of a shipper, an ocean transportation intermediary, or a motor carrier by refusing, or threatening to refuse, an otherwise-available cargo space accommodation; or
“(2) resort to any other unfair or unjustly discriminatory action for—
“(A) the reason that a shipper, an agent of a shipper, an ocean transportation intermediary, or motor carrier has—
“(i) patronized another carrier; or
“(ii) filed a complaint against the common carrier, marine terminal operator, or ocean transportation intermediary; or
“(B) any other reason.”
SEC. 6. Public Disclosure.
“(d) Public Disclosures.—The Federal Maritime Commission shall publish, and annually update, on the website of the Commission—
“(1) all findings by the Commission of false detention and demurrage invoice information by common carriers under section 41104(a)(15) of this title; and
“(2) all penalties imposed or assessed against common carriers, as applicable, under sections 41107, 41108, and 41109, listed by each common carrier.”
SEC. 7. Common Carriers.
“(3) unreasonably refuse cargo space accommodations when available, or resort to other unfair or unjustly discriminatory methods;”
“(14) assess any party for a charge that is inconsistent or does not comply with all applicable provisions and regulations, including subsection (c) of section 41102 or part 545 of title 46, Code of Federal Regulations (or successor regulations);
“(15) invoice any party for demurrage or detention charges unless the invoice includes information as described in subsection (d) showing that such charges comply with—
“(A) all provisions of part 545 of title 46, Code of Federal Regulations (or successor regulations); and
“(B) applicable provisions and regulations, including the principles of the final rule published on May 18, 2020, entitled ‘Interpretive Rule on Demurrage and Detention Under the Shipping Act’ (or successor rule); or
“(16) for service pursuant to a service contract, give any undue or unreasonable preference or advantage or impose any undue or unreasonable prejudice or disadvantage against any commodity group or type of shipment.”
; and
“(d) Detention and Demurrage Invoice Information.—
“(1) Inaccurate invoice.—If the Commission determines, after an investigation in response to a submission under section 41310, that an invoice under subsection (a)(15) was inaccurate or false, penalties or refunds under section 41107 shall be applied.
“(2) Contents of invoice.—An invoice under subsection (a)(15), unless otherwise determined by subsequent Commission rulemaking, shall include accurate information on each of the following, as well as minimum information as determined by the Commission:
“(A) Date that container is made available.
“(B) The port of discharge.
“(C) The container number or numbers.
“(D) For exported shipments, the earliest return date.
“(E) The allowed free time in days.
“(F) The start date of free time.
“(G) The end date of free time.
“(H) The applicable detention or demurrage rule on which the daily rate is based.
“(I) The applicable rate or rates per the applicable rule.
“(J) The total amount due.
“(K) The email, telephone number, or other appropriate contact information for questions or requests for mitigation of fees.
“(L) A statement that the charges are consistent with any of Federal Maritime Commission rules with respect to detention and demurrage.
“(M) A statement that the common carrier’s performance did not cause or contribute to the underlying invoiced charges.
“(e) Safe Harbor.—If a non-vessel operating common carrier passes through to the relevant shipper an invoice made by the ocean common carrier, and the Commission finds that the non-vessel operating common carrier is not otherwise responsible for the charge, then the ocean common carrier shall be subject to refunds or penalties pursuant to subsection (d)(1).
“(f) Elimination of Charge Obligation.—Failure to include the information required under subsection (d) on an invoice with any demurrage or detention charge shall eliminate any obligation of the charged party to pay the applicable charge.”
SEC. 8. Assessment of Penalties or Refunds.
“(a) General Authority.—Until a matter is referred to the Attorney General, the Federal Maritime Commission may—
“(1) after notice and opportunity for a hearing, in accordance with this part—
“(A) assess a civil penalty; or
“(B) in addition to, or in lieu of, assessing a civil penalty under subparagraph (A), order a refund of money (including additional amounts in accordance with section 41305(c)), subject to subsection (b)(2); and
“(2) compromise, modify, or remit, with or without conditions, a civil penalty or refund imposed under paragraph (1).
“(b) Determination of Amount.—
“(1) Factors for consideration.—In determining the amount of a civil penalty assessed or refund of money ordered pursuant to subsection (a), the Federal Maritime Commission shall take into consideration—
“(A) the nature, circumstances, extent, and gravity of the violation committed;
“(B) with respect to the violator—
“(i) the degree of culpability;
“(ii) any history of prior offenses;
“(iii) the ability to pay; and
“(iv) such other matters as justice may require; and
“(C) the amount of any refund of money ordered pursuant to subsection (a)(1)(B).
“(2) Commensurate reduction in civil penalty.—
“(A) In general.—In any case in which the Federal Maritime Commission orders a refund of money pursuant to subsection (a)(1)(B) in addition to assessing a civil penalty pursuant to subsection (a)(1)(A), the amount of the civil penalty assessed shall be decreased by any additional amounts included in the refund of money in excess of the actual injury (as defined in section 41305(a)).
“(B) Treatment of refunds.—A refund of money ordered pursuant to subsection (a)(1)(B) shall be—
“(i) considered to be compensation paid to the applicable claimant; and
“(ii) deducted from the total amount of damages awarded to that claimant in a civil action against the violator relating to the applicable violation.”
SEC. 9. Data Collection.
“§ 41110. Data collection
“The Federal Maritime Commission shall publish on its website a calendar quarterly report that describes the total import and export tonnage and the total loaded and empty 20-foot equivalent units per vessel (making port in the United States, including any territory or possession of the United States) operated by each ocean common carrier covered under this chapter. Ocean common carriers under this chapter shall provide to the Commission all necessary information, as determined by the Commission, for completion of this report.”
“41110. Data collection.”.
SEC. 10. Charge Complaints.
“§ 41310. Charge complaints
“(a) In General.—A person may submit to the Federal Maritime Commission, and the Commission shall accept, information concerning complaints about charges assessed by a common carrier. The information submitted to the Commission shall include the bill of lading numbers and invoices, and may include any other relevant information.
“(b) Investigation.—Upon receipt of a submission under subsection (a), with respect to a charge assessed by a common carrier, the Commission shall promptly investigate the charge with regard to compliance with section 41104(a) and section 41102. The common carrier shall—
“(1) be provided an opportunity to submit additional information related to the charge in question; and
“(2) bear the burden of establishing the reasonableness of any demurrage or detention charges pursuant to section 545.5 of title 46, Code of Federal Regulations (or successor regulations).
“(c) Refund.—Upon receipt of submissions under subsection (a), if the Commission determines that a charge does not comply with section 41104(a) or 41102, the Commission shall promptly order the refund of charges paid.
“(d) Penalties.—In the event of a finding that a charge does not comply with section 41104(a) or 41102 after submission under subsection (a), a civil penalty under section 41107 shall be applied to the common carrier making such charge.
“(e) Considerations.—If the common carrier assessing the charge is acting in the capacity of a non-vessel-operating common carrier, the Commission shall, while conducting an investigation under subsection (b), consider—
“(1) whether the non-vessel-operating common carrier is responsible for the noncompliant assessment of the charge, in whole or in part; and
“(2) whether another party is ultimately responsible in whole or in part and potentially subject to action under subsections (c) and (d).”
“41310. Charge complaints.”.
SEC. 11. Investigations.
SEC. 12. Award of Additional Amounts.
SEC. 13. Enforcement of Reparation Orders.
SEC. 14. Annual Report to Congress.
“(7) an identification of any otherwise concerning practices by ocean common carriers, particularly such carriers that are controlled carriers, that are—
“(A) State-owned or State-controlled enterprises; or
“(B) owned or controlled by, a subsidiary of, or otherwise related legally or financially (other than a minority relationship or investment) to a corporation based in a country—
“(i) identified as a nonmarket economy country (as defined in section 771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18))) as of the date of enactment of this paragraph;
“(ii) identified by the United States Trade Representative in the most recent report required by section 182 of the Trade Act of 1974 (19 U.S.C. 2242) as a priority foreign country under subsection (a)(2) of that section; or
“(iii) subject to monitoring by the United States Trade Representative under section 306 of the Trade Act of 1974 (19 U.S.C. 2416).”
SEC. 15. Technical Amendments.
SEC. 16. Dwell Time Statistics.
SEC. 17. Federal Maritime Commission Activities.
SEC. 18. Temporary Emergency Authority.
SEC. 19. Best Practices for Chassis Pools.
SEC. 20. Licensing Testing.
SEC. 21. Planning.
“(1) In general.—Of the amounts”
; and
“(2) Nonapplicability of certain limitations.—Subparagraphs (A) and (B) of subsection (c)(2) shall not apply with respect to amounts made available for planning, preparation, or design under paragraph (1).”