THE prospect of major changes to how the US regulates container shipping moved a step closer to reality last week after the Senate introduced legislation that would shift power away from carriers.

Similar to the House's version, overwhelmingly passed in December, the Senate's Ocean Shipping Reform Act (OSRA) of 2022 calls for container lines and terminal operators to validate container storage fees while strengthening their common carriage responsibilities.

If ultimately signed into law by President Joe Biden, the legislation would be the first major reform to the US Shipping Act since 1998, and comes amid major port disruption, highly elevated rates, and higher supply chain-driven inflation.

Mr Biden, who has endorsed the House's OSRA bill, would have to sign finalised legislation hashed out between House and Senate leaders before it becomes law.

Shipping lines continue to rail against the introduction of new legislation in the US that is aimed at curbing some of the excesses that both importers and exporters have complained about over the past two years.

"Ocean carriers have deployed every available ship and container to move the continuing record levels of cargo resulting from pandemic-driven US demand for imports - but when ships cannot get into port to discharge and load cargo because of landside logistics breakdowns, it is clear that further regulating ocean carriers will not solve the deeper challenges in US supply chains," says John Butler, president & CEO of the World Shipping Council (WSC).

"The deeply flawed bill passed by the House at the end of last year would place government officials in the role of second-guessing commercially negotiated service contracts and dictating how carriers operate ship networks - an approach that would make the existing congestion worse and stifle innovation.

"We look forward to the opportunity to work with the Senate to craft a final bill that - in contrast to the House bill - takes a comprehensive, forward-looking view of the real root causes of supply chain congestion - and that does not make that congestion worse," said Mr Butler.

The WSC will continue to work with the Congress to seek real solutions that further strengthen the ocean transportation system that has supported the US economy throughout the pandemic.