Resources

Resources / In The News

Drayage Per Diem Changes Coming in 2024: A Positive Step for Shippers

The shipping industry plays a crucial role in global trade, facilitating the movement of goods and ensuring supply chain efficiency. However, challenges like penalty charges for delays in returning containers have long been a concern for shippers.

To address these issues and establish regulatory oversight, the Ocean Shipping Reform Act of 2022 (OSRA) was enacted. In 2024, there will be changes in Drayage Per Diem regulations as a result of OSRA and highlight the benefits they bring to shippers.

Proactive Measures to Avoid Penalty Charges

One of the key aspects of OSRA is the implementation of regulatory oversight on ocean carrier practices. The specific focus on per diem aims to proactively avoid penalty charges for delays in container return. By increasing oversight, the frequency and total amount of charges should be reduced, eliminating the need to go back three years to recoup losses. These changes will provide a more transparent and fair system for shippers.

Empowering Shippers and Increased Collaboration

While the new regulations are expected to improve processes, it is crucial for shippers to stay vigilant and be proactive in managing these charges. Working with a carrier who can fight on your behalf will be crucial, especially given the smaller window of time to address disputes. Shippers must take control of their operations and actively monitor and respond to any potential issues related to per diem charges.

Aiding Customers and Shippers

Aside from addressing penalty charges, OSRA 22 also aims to aid customers and shippers in other areas of the shipping process. One significant aspect is the focus on ocean rate practices. These changes will ensure more transparency and fairness in pricing, benefiting shippers by allowing them to make informed decisions.

Another area of focus is equipment availability and returns. Through the requirement for port operators, chassis owners and providers with a fleet of over 50 chassis to submit dwell time statistics to the Federal Maritime Commission (FMC), shippers will gain valuable visibility into equipment availability and dwell times. This information will allow for better planning and avoiding unnecessary delays.

Positive Impacts on Shippers and Customers

Overall, the changes brought about by OSRA 22, specifically the Drayage Per Diem regulations, are a positive development for shippers. The aim of these changes is to eliminate discriminatory practices from ocean carriers, provide greater visibility into the shipping process and improve the efficiency of ports.

By enhancing regulatory oversight, reducing penalty charges and increasing transparency, OSRA 22 enables shippers to have greater control over their operations and avoid unnecessary costs.

In conclusion, the 2024 Drayage Per Diem changes coming due to the Ocean Shipping Reform Act of 2022 bring significant benefits to shippers. By eliminating discriminatory practices, increasing visibility and promoting efficiency, these changes empower shippers to make informed decisions, avoid unnecessary charges and contribute to a more robust and reliable global supply chain.