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Code · STATUTE-COMPILATIONS · Ocean Shipping Reform Act of 2022 · Sec. 7

Sec. 7. COMMON CARRIERS

1,100 words·~5 min read·/statute-compilations/comps-16944/sec-7

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## SEC. 7 COMMON CARRIERS ###
(a)In General Section 41104 of title 46, United States Code, is amended— ####
(1)in subsection (a)— #####
(A)in the matter preceding paragraph (1), by striking “may not” and inserting “shall not”; #####
(B)by striking paragraph
(3)and inserting the following: > > #### “(3) > > unreasonably refuse cargo space accommodations when available, or resort to other unfair or unjustly discriminatory methods;” > ; #####
(C)in paragraph (5), by striking “ in the matter of rates or charges” and inserting “against any commodity group or type of shipment or in the matter of rates or charges”; #####
(D)in paragraph (10), by adding “, including with respect to vessel space accommodations provided by an ocean common carrier” after “negotiate”; #####
(E)in paragraph
(12)by striking “; or” and inserting a semicolon; #####
(F)in paragraph
(13)by striking the period and inserting a semicolon; and #####
(G)by adding at the end the following: > > #### “(14) > > assess any party for a charge that is inconsistent or does not comply with all applicable provisions and regulations, including subsection
(c)of section 41102 or part 545 of title 46, Code of Federal Regulations (or successor regulations); > > > #### “(15) > > invoice any party for demurrage or detention charges unless the invoice includes information as described in subsection
(d)showing that such charges comply with— > > > ##### “(A) > > all provisions of part 545 of title 46, Code of Federal Regulations (or successor regulations); and > > > ##### “(B) > > applicable provisions and regulations, including the principles of the final rule published on May 18, 2020, entitled ‘Interpretive Rule on Demurrage and Detention Under the Shipping Act’ (or successor rule); or > > > #### “(16) > > for service pursuant to a service contract, give any undue or unreasonable preference or advantage or impose any undue or unreasonable prejudice or disadvantage against any commodity group or type of shipment.” > ; and ####
(2)by adding at the end the following: > > ### “(d) Detention and Demurrage Invoice Information > > > #### “(1) Inaccurate invoice > > If the Commission determines, after an investigation in response to a submission under section 41310, that an invoice under subsection (a)(15) was inaccurate or false, penalties or refunds under section 41107 shall be applied. > > > #### “(2) Contents of invoice > > An invoice under subsection (a)(15), unless otherwise determined by subsequent Commission rulemaking, shall include accurate information on each of the following, as well as minimum information as determined by the Commission: > > > ##### “(A) > > Date that container is made available. > > > ##### “(B) > > The port of discharge. > > > ##### “(C) > > The container number or numbers. > > > ##### “(D) > > For exported shipments, the earliest return date. > > > ##### “(E) > > The allowed free time in days. > > > ##### “(F) > > The start date of free time. > > > ##### “(G) > > The end date of free time. > > > ##### “(H) > > The applicable detention or demurrage rule on which the daily rate is based. > > > ##### “(I) > > The applicable rate or rates per the applicable rule. > > > ##### “(J) > > The total amount due. > > > ##### “(K) > > The email, telephone number, or other appropriate contact information for questions or requests for mitigation of fees. > > > ##### “(L) > > A statement that the charges are consistent with any of Federal Maritime Commission rules with respect to detention and demurrage. > > > ##### “(M) > > A statement that the common carrier’s performance did not cause or contribute to the underlying invoiced charges. > > > ### “(e) Safe Harbor > > If a non-vessel operating common carrier passes through to the relevant shipper an invoice made by the ocean common carrier, and the Commission finds that the non-vessel operating common carrier is not otherwise responsible for the charge, then the ocean common carrier shall be subject to refunds or penalties pursuant to subsection (d)(1). > > > ### “(f) Elimination of Charge Obligation > > Failure to include the information required under subsection
(d)on an invoice with any demurrage or detention charge shall eliminate any obligation of the charged party to pay the applicable charge.” > . ###
(b)Rulemaking on Demurrage or Detention **[**[46 U.S.C. 41102 note](/us/usc/t46/s41102)**]** ####
(1)In general Not later than 45 days after the date of enactment of this Act, the Federal Maritime Commission shall initiate a rulemaking further defining prohibited practices by common carriers, marine terminal operators, shippers, and ocean transportation intermediaries under section 41102(c) of title 46, United States Code, regarding the assessment of demurrage or detention charges. The Federal Maritime Commission shall issue a final rule defining such practices not later than 1 year after the date of enactment of this Act. ####
(2)Contents The rule under paragraph
(1)shall only seek to further clarify reasonable rules and practices related to the assessment of detention and demurrage charges to address the issues identified in the final rule published on May 18, 2020, entitled “Interpretive Rule on Demurrage and Detention Under the Shipping Act” (or successor rule), including a determination of which parties may be appropriately billed for any demurrage, detention, or other similar per container charges. ###
(c)Rulemaking on Unfair or Unjustly Discriminatory Methods **[**[46 U.S.C. 41104 note](/us/usc/t46/s41104)**]** Not later than 60 days after the date of enactment of this Act, the Federal Maritime Commission shall initiate a rulemaking defining unfair or unjustly discriminatory methods under section 41104(a)(3) of title 46, United States Code, as amended by this section. The Federal Maritime Commission shall issue a final rule not later than 1 year after the date of enactment of this Act. ###
(d)Rulemaking on Unreasonable Refusal to Deal or Negotiate With Respect to Vessel Space Accommodations Not later than 30 days after the date of enactment of this Act, the Federal Maritime Commission, in consultation with the Commandant of the United States Coast Guard, shall initiate a rulemaking defining unreasonable refusal to deal or negotiate with respect to vessel space under section 41104(a)(10) of title 46, as amended by this section. The Federal Maritime Commission shall issue a final rule not later than 6 months after the date of enactment of this Act.
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Sec. 7
COMMON CARRIERS
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