Fragrance Creators Applauds the House’s Passage of the Ocean Shipping Reform Act

Supply chain issues might be the biggest gripe of 2021 next to the pandemic. But good news is on the way for the household and personal care industry with the Ocean Shipping Reform Act.

Fragrance Creators Association President & CEO Farah K. Ahmed issued the following statement after the House of Representative’s passage of the Ocean Shipping Reform Act, H.R. 4996:
 
“Fragrance Creators applauds the House’s passage of the Ocean Shipping Reform Act. Ocean shipping is a critical aspect of our economic circulatory system and—like many industries facing supply chain disruptions—the fragrance value chain is facing significant delays in both imports and exports. Our members create, supply and use scents in personal care and beauty, cleaning and disinfecting, and other products we all enjoy each day, and in our homes, school, hospitals, plants, food processing facilities, and more.
 
“The fragrance industry contributes billions to the U.S. economy and is a driver of over 200,000 well-paying jobs. Our members remain at the forefront of green innovation and advancing ethical sourcing in the U.S. and around the world. Fragrance is a critical input into essential products – masking unpleasant odors in cleaning products that would otherwise render them unusable, encouraging the safe use of cleaning and sanitizing products, and fighting malodors that can reduce quality of life. Studies have also shown that scents contribute to emotional wellbeing by enhancing memory, increase relaxation and sleep and more.
 
“Fragrance industry disruptions have ripple effects down the supply chain, resulting in consumers experiencing increased prices and empty shelves. The Ocean Shipping Reform Act of 2021 addresses these negative impacts by putting in place common sense reforms to address long-standing maritime shipping issues, which have only been exasperated by the COVID-19 pandemic. While this bill cannot solve all the supply chain challenges our industry is facing, it will go a long way to address some of our core maritime issues.”
 

About the Ocean Shipping Reform Act of 2021

• sets forth requirements for operating a shipping exchange involving ocean transportation in the foreign commerce of the United States;
• prohibits ocean common carriers and marine terminal operators from retaliating or discriminating against shippers because such shippers have patronized another carrier, or filed a complaint;
• requires the Federal Maritime Commission (FMC) to publish and annually update all its findings of false certifications by ocean common carriers or marine terminal operators and all penalties assessed against such carriers or operators;
• requires ocean common carriers to adhere to minimum service standards that meet the public interest;
• directs the FMC to establish rules prohibiting ocean common carriers and marine terminal operators from adopting and applying unjust and unreasonable demurrage and detention fees;
• requires ocean common carriers to report to the FMC each calendar quarter on total import and export tonnage and the total loaded and empty 20-foot equivalent units per vessel that makes port in the United States;
• authorizes the FMC to initiate investigations of an ocean common carrier's fees or charges and apply enforcement measures, as appropriate; and
• revises annual reporting requirements for the FMC on foreign laws and practices to include practices by ocean common carriers.