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ARA Co-Signs Rail Storage Letter

May 02 2023

ARA co-signed a letter applauding the passage of the Ocean Shipping Reform Act of 2022 and the recent introduction of the Ocean Shipping Reform Implementation Act, H.R. 1836.

ARA and the undersigned organizations strongly support modernizing our nation's maritime policies and amending the Shipping Act of 1984 to provide redress for unfair business practices that adversely impact supply chains and the ocean cargo delivery network. 

There is an additional issue related to Demurrage and Detention charges that is currently unaddressed by OSRA22 and H.R. 1836 that continues to unfairly plague the shipping public which we would like to bring to your attention. Rail storage, a form of demurrage, is charged by railroads as part of international ocean transportation at the nation’s interior rail terminals. In recent years, these demurrage charges have resulted in costs to U.S. businesses in the hundreds of millions of dollars.

We therefore ask Congress to clarify that rail storage charges assessed under ocean bills of lading for through transportation should be billed through the contracting ocean carrier and subject to the OSRA22 demurrage and detention invoicing requirements.