New Maritime Rules Risk Heightened Port Delays Industry Warns

Published: 11/03/2025
Maritime Regulations Port Congestion Demurrage
US port leaders are expressing concerns about upcoming maritime regulations, believing they could lead to reduced port efficiency and increased congestion. They are urging caution, enhanced communication, and the exploration of commercial solutions to ensure ports continue to operate efficiently under the new regulatory environment, safeguarding global trade. The leaders emphasize the need for a collaborative approach to mitigate potential negative impacts and maintain the smooth flow of goods through American ports, highlighting the importance of proactive planning and adaptation.
New Maritime Rules Risk Heightened Port Delays Industry Warns

Introduction: Supply Chain Vulnerabilities and the Need for Regulatory Change

Global supply chains, particularly maritime shipping, have faced unprecedented challenges in recent years. The COVID-19 pandemic, geopolitical tensions, and increasing extreme weather events have severely impacted the stability and efficiency of international trade. Widespread port congestion, soaring freight rates, and cargo delays have exposed systemic vulnerabilities in current maritime systems, highlighting the urgent need for reform.

As critical nodes connecting the U.S. economy to global trade, American ports directly influence national competitiveness. During the pandemic, unprecedented congestion at U.S. ports led to supply chain disruptions, product shortages, and worsening inflation. Shippers faced not only exorbitant freight costs but also substantial demurrage and detention fees, further exacerbating economic pressures.

The Federal Maritime Commission (FMC) is advancing the Ocean Shipping Reform Act (OSRA) to modify fee structures and enhance market transparency. However, port operators warn these changes might reduce efficiency and worsen congestion. This analysis examines the reform's context, impacts, and future implications through a data-driven lens.

Part I: Pandemic Shipping Crisis and Soaring Fees

1. Global Supply Chain Disruptions

The pandemic created a perfect storm for maritime logistics:

  • Production halts: Factory closures, particularly in China, reduced global manufacturing output by 8.4% in early 2020 (World Bank data)
  • Demand surges: E-commerce growth accelerated by 32% in 2020 (U.S. Census Bureau)
  • Labor shortages: Port worker availability dropped 18% during peak pandemic months (BLS data)
  • Transport bottlenecks: Global container shipping reliability fell to 35% in 2021 (Sea-Intelligence)

2. Port Congestion: The Supply Chain's Clogged Artery

U.S. West Coast ports became emblematic of global congestion:

  • Los Angeles/Long Beach average vessel wait times exceeded 14 days in 2021 (Marine Exchange data)
  • Global port congestion peaked at 30% above pre-pandemic levels (Drewry Shipping Consultants)

3. Demurrage & Detention Fees: Shippers' Financial Burden

Fee structures created significant pain points:

  • Standard container fees increased 38% from $586 to $868 (Container xChange)
  • Top 5 carriers collected $4.8 billion in detention fees in 2021 (FMC analysis)
"We were charged $12,000 in demurrage for containers stuck in port congestion we didn't cause. The system penalizes victims rather than addressing root causes." — National Retail Federation member

Part II: FMC Regulatory Reforms

1. OSRA Key Provisions

The reform focuses on three pillars:

  1. Fee structure modernization
  2. Enhanced carrier transparency requirements
  3. Strengthened FMC enforcement authority

2. The Billing Controversy

The most contentious proposal restricts carriers to billing only contracted parties, aiming to:

  • Prevent unjustified pass-through charges
  • Clarify liability chains
  • Reduce disputed invoices

Part III: Port Operators' Concerns

At the TPM23 conference, port executives voiced reservations:

"We must be extremely careful not to dismantle a functioning system that's evolved over decades." — Griff Lynch, Georgia Ports Authority
"Fee structures create necessary incentives for cargo fluidity. Removing them risks recreating 2021's congestion." — Stephen Edwards, Virginia Port Authority

Key Operator Concerns

  1. Potential erosion of cargo velocity incentives
  2. Increased administrative burdens
  3. Unintended consequences for port capacity utilization

Part IV: Policy Recommendations

1. Data-Driven Solutions

Analysis suggests a balanced approach:

  • Dynamic fee structures tied to real-time congestion metrics
  • Port efficiency benchmarking programs
  • Digital platforms for stakeholder coordination

2. Future Outlook

The shipping industry faces three imperatives:

  1. Balance: Equity for shippers vs. operational realities
  2. Efficiency: Technology adoption and process innovation
  3. Sustainability: Environmental compliance and resilience

With container volumes projected to grow 3.5% annually (UNCTAD), effective reform will require continuous monitoring and adjustment to maintain U.S. port competitiveness in an evolving global trade environment.

Related Topics