June ’22 at-a-glance … supply chain

OSRA becomes law

President Biden signed S. 3580, the Ocean Shipping Reform Act of 2022 (OSHA) into law. NAFEM strongly supported OSRA, which authorizes appropriations for the Federal Maritime Commission (FMC) for fiscal years 2022 through 2025. The law gives the FMC additional authority which, hopefully, will address some of the supply chain bottlenecks the industry has experienced.

OSRA establishes additional requirements and prohibited conduct for ocean carriers; requires the FMC to issue rules related to certain fee assessments, prohibited practices, and establishment of a shipping registry; and authorizes the FMC under certain circumstances to issue an emergency order requiring common carriers to share information directly with shippers and rail and motor carriers.

Thanks to all NAFEM members who raised their voices in support of this issue!

Uyghur Forced Labor Prevention Act (UFLPA) effective June 21

U.S. Customs and Border Control (CBP) began enforcing the Uyghur Forced Labor Prevention Act (UFLPA) June 21. The Act establishes a rebuttable presumption that items mined, produced or manufactured wholly or in part in the Xinjiang Uyghur Autonomous Region of the People’s Republic of China are not entitled to entry to the United States. The presumption may be rebutted with clear and convincing evidence that the items were not mined, produced or manufactured wholly or in part by forced labor.

Contract negotiations continue with employees at 29 west coast ports

Daily contract talks continue between the Pacific Maritime Association (PMA), representing employers at 29 ports along the West Coast, and the International Longshore & Warehouse Union (ILWU), which represents 15,600 dockworkers at those ports. The current contract expires July 1 and both sides say they expect cargo to keep moving until an agreement is reached.

The PMA provides online background on the 2022 negotiations but they are not discussing the ongoing dialogue. The ports of Los Angeles and Long Beach alone handle about 40% of U.S. imports from Asia.