Decoding OSRA: Section 17. Federal Maritime Commission Activities

Posted March 5, 2024

In international business, International Shipping, maritime shipping, ocean freight, ocean shipping, shippers

Introduction

Even though the Ocean Shipping Reform Act of 2022 (OSRA) was passed a couple years ago, I keep saying in these introductions that we’re just beginning to see the legislation’s results. Case in point, only last week, the Federal Maritime Commission issued its “final” rules for detention and demurrage billing, which it was given authority to do by OSRA. Just how OSRA changed U.S. maritime law and the ways that affects businesses’ imports and exports as well as carriers’ and other industry stakeholders’ operations within maritime shipping is very much worth continued examination. At Universal Cargo, we want to help shippers know how law changes affect their businesses.

So, what exactly does OSRA say and do? This blog series goes through it section by section, so you can learn the answers.

If you’re new to this series, we give you the OSRA text; the text of the U.S. Code, usually in Title 46, before and after its amendments and/or additions; and consider what the changes mean for U.S. importers and exporters.

Previously covered in this series:

Now let’s move forward with Section 17 of OSRA.

Quick Overview

Section 17 of OSRA does not amend Title 46 of the U.S. code as so many of the preceding sections have done. Rather, Section 17 adds additional legislation to U.S. maritime law that increases the size of the Federal Maritime Commission (FMC), mandating specific offices it must have and the existence of a submission page for the public to submit various issues and comments to the appropriate offices.

This section adds instruction for how the FMC is to comply with Section 41301 of Title 46, which pertains to individuals submitting complaints and claims to the FMC regarding alleged violations of maritime law that Title 46 lays out.

Section 16 Text

SEC. 17. <<NOTE: 46 USC 41301 note prec.>>  FEDERAL MARITIME 
                      COMMISSION ACTIVITIES.

    (a) Public Submissions to Commission.--The Federal Maritime 
Commission shall--
            (1) <<NOTE: Website.>>  establish on the public website of 
        the Commission a webpage that allows for the submission of 
        comments, complaints, concerns, reports of noncompliance, 
        requests for investigation, and requests for alternative dispute 
        resolution; and
            (2) direct each submission under the link established under 
        paragraph (1) to the appropriate component office of the 
        Commission.

    (b) Authorization of Office of Consumer Affairs and Dispute 
Resolution Services.--The Commission shall maintain an Office of 
Consumer Affairs and Dispute Resolution Services to provide 
nonadjudicative ombuds assistance, mediation, facilitation, and 
arbitration to resolve challenges and disputes involving cargo 
shipments, household good shipments, and cruises subject to the 
jurisdiction of the Commission.
    (c) Enhancing Capacity for Investigations.--
            (1) In general. – <<NOTE: Deadline.>> Pursuant to section 
        41302 of title 46, United States Code, not later than 18 months 
        after the date of enactment of this Act, the Chairperson of the 
        Commission shall staff within the Bureau of Enforcement, the 
        Bureau of Certification and Licensing, the Office of the 
        Managing Director, the Office of Consumer Affairs and Dispute 
        Resolution Services, and the Bureau of Trade Analysis not fewer 
        than 7 total positions to assist in investigations and 
        oversight, in addition to the positions within the Bureau of 
        Enforcement, the Bureau of Certification and Licensing, the 
        Office of the Managing Director, the Office of Consumer Affairs 
        and Dispute Resolution Services, and the Bureau of Trade 
        Analysis on that date of enactment.
            (2) Duties.--The additional staff appointed under paragraph 
        (1) shall provide support--
                    (A) to Area Representatives of the Bureau of 
                Enforcement;
                    (B) to attorneys of the Bureau of Enforcement in 
                enforcing the laws and regulations subject to the 
                jurisdiction of the Commission;
                    (C) for the alternative dispute resolution services 
                of the Commission; or
                    (D) for the review of agreements and activities 
                subject to the authority of the Commission.

Original Title 46 Text

While Section 17 of OSRA doesn’t exactly amend Section 41301 of Title 46, it does pertain to it. Therefore, I’ve included the section here for context.

§41301. Complaints

(a) In General.—A person may file with the Federal Maritime Commission a sworn complaint alleging a violation of this part, except section 41307(b)(1). If the complaint is filed within 3 years after the claim accrues, the complainant may seek reparations for an injury to the complainant caused by the violation.

(b) Notice and Response.—The Commission shall provide a copy of the complaint to the person named in the complaint. Within a reasonable time specified by the Commission, the person shall satisfy the complaint or answer it in writing.

(c) If Complaint Not Satisfied.—If the complaint is not satisfied, the Commission shall investigate the complaint in an appropriate manner and make an appropriate order.

Amended Text

N/A.

Paragraph (a) Observations

Paragraph (a) of Section 17 seems straightforward. It has two subparagraphs. The first requires the FMC to set up a page on its website for people to submit their sworn complaints of alleged violations that Title 46’s Section 41301 allows. It also expands complaints to “comments, complaints, concerns, reports of noncompliance, requests for investigation, and requests for alternative dispute resolution.”

This fits with general trends of OSRA. The lawmakers appear to be particularly concerned with protecting U.S. shippers and encouraging them to report unfair or illegal practices they face in the international shipping industry.

The second subparagraph mandates the FMC send submitted complaints (etc.) to the appropriate offices within the commission, which brings us to…

Paragraph (b) Observations

Paragraph (b) instructs the FMC to have an Office of Consumer Affairs and Dispute Resolution Services. The services it is to offer are “nonadjudicative ombuds assistance, mediation, facilitation, and arbitration to resolve challenges and disputes involving cargo shipments, household good shipments, and cruises subject to the jurisdiction of the Commission.

Ombuds is a less-than-common term. Ombuds has to do with investigating, reporting on, and settling disputes or complaints. The broadness of the term makes services listed after it a bit redundant; however, they do spell out the purpose of the office’s services better for the common reader. If you go to the website of the FMC’s new Office of Consumer Affairs and Dispute Resolution Services, it states that its “mission is to ensure a competitive and reliable international ocean transportation supply system that supports the U.S. economy and protects the public from unfair and deceptive practices.”

One thing here that is interesting, and probably good, is that this office of the FMC is not to act as the judge over complaints or disputes brought before it (nonadjudicative). The language of paragraph (b) leaves room for the courts to make legal judgments while the Office of Consumer Affairs and Dispute Resolution Services can help resolve disputes before they reach the courts.

That doesn’t mean investigations included in the scope of the services of this office couldn’t be used in litigation or even judgments Title 46, with all of its OSRA updates, may grant the FMC to make. Speaking of investigations, we come to…

Paragraph (c) Observations

Paragraph (c), with its two subparagraphs, adds additional positions within the FMC that are specifically meant to increase the commission’s capacity for investigating complaints, allegations, and agreements under the FMC’s jurisdiction.

You can read the specifics laid out concerning whom these new positions report to and what details are given concerning their duties as well as I can. There are no profound observations I have here. Obviously, this increase of employees within the FMC requires funding. Often, bigger government within an industry has expensive results for that industry. However, funding the enforcement of law is an important part of protecting those within that industry, along with its consumers, from unfair and illegal practices. The latter would seem to be the goal in increasing the FMC’s staff here. There have been complaints in the past that the FMC didn’t have the investigative resources to seriously handle all the complaints and problems before it.

Conclusion

Section 17 continues a trend within OSRA of increasing the size and power of the FMC with a goal of protecting those withing the international shipping industry and, you could probably say, the nation’s supply chain as a whole. Specifically, Section 17 increases the size of the FMC, requiring the existence of an office or branch within it and an increase of employees for investigative purposes. All of this, of course, requires more money, though that money is not specifically addressed here.

It’s still early to see how successful the increase in the size, power, and budget of the FMC is and will be at improving the international shipping industry for shippers and the industry’s stakeholders. Hopefully, data over the next several years will help give insight into that. But I wouldn’t expect that data to come without spin from politicians and probably from those within the industry as well.

If you noticed something in Section 17 of OSRA that you think deserves more attention, please let us know in the comments section below. Perhaps you have a take on it that I didn’t consider or disagree with an observation I’ve made. We’d love to hear from you.

Stay tuned for when Decoding OSRA continues, looking at Section 18….

Click here for free freight rate pricing

decoding OSRA, OSRA, unpacking OSRA

Jared Vineyard

For more than ten years, Jared has researched and written about the international shipping industry for the freight forwarder Universal Cargo. His work has been republished on the web and in print, including the maritime news magazine Inside Marine. When first joining Universal Cargo, Jared trained in the freight forwarding process and helped customers with their imports and exports, giving him his initial international shipping sea legs.