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Legislative bills

American Apparel & Footwear Association Calls for Passage of Ocean Shipping Reform Act

Strategic Insights

— 1 min read

The American Apparel & Footwear Association is urging the U.S. Senate to pass the Ocean Shipping Reform Act (OSRA) to address the escalating shipping crisis. The bill, introduced by Senators Klobuchar and Thune, aims to establish rules for the Federal Maritime Commission to respond to breaches of contracts and excessive detention and demurrage fees. The association's president, Steve Lamar, emphasizes the dire need for increased enforcement to prevent predatory practices that are driving up prices for American companies.

Key Takeaways:

  • The American Apparel & Footwear Association is advocating for the passage of the Ocean Shipping Reform Act (OSRA) to address the shipping crisis.
  • The bill requires the Federal Maritime Commission to establish and enforce rules to respond to breaches of contracts and excessive detention and demurrage fees.
  • The association estimates that inflationary price increases for apparel and footwear are unprecedented, with prices rising after 20-plus years of deflation in the market.
  • The price increases are attributed to record-setting shipping rates, unprecedented shipping delays, tariffs on imports, and unfair and excessive shipping fees.
  • AAFA has been a regular advocate for increased enforcement by the FMC, particularly regarding unjust detention and demurrage fees.
  • The association sent a letter to House Leaders on February 3 urging them to vote "YES" on adding the House-passed H.R. 4996, the Ocean Shipping Reform Act of 2021 (OSRA 21), to the America COMPETES Act.
  • The House approved the amendment to the America COMPETES Act by a vote of 367-59 on February 3.

Statistics:

  • 20-plus years of deflation in the apparel and footwear market have been followed by unprecedented inflationary price increases.
  • Record-setting shipping rates have contributed to the price increases.
  • Unprecedented shipping delays have added to the costs faced by American companies.
  • Tariffs on imports and unfair and excessive shipping fees have also driven up prices.
  • The House of Representatives voted 367-59 in favor of adding the Ocean Shipping Reform Act 2021 to the America COMPETES Act.

Sources:

  • American Apparel & Footwear Association
  • Senators Klobuchar (D-MN) and Thune (R-SD)
  • House of Representatives
  • American COMPETES Act
  • Federal Maritime Commission (FMC)
  • AAFA's letter to House Leaders dated February 3, 2023 (Note: The exact date of the letter is not provided in the source material.

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