The U.S. shipping industry is at a pivotal moment. At the recent TPM25 conference in Long Beach, California, the National Industrial Transportation League (NITL) unveiled a groundbreaking proposal: the Ocean Shipper Bill of Rights (OSBOR). This initiative, presented during a meeting of the National Shipper Advisory Committee (NSAC), signals a bold step toward enhancing transparency, accountability, and fairness in the ocean freight sector. For U.S. shippers—particularly small and medium-sized businesses—this could be a transformative shift in how you engage with ocean carriers.
At Gain Consulting, we’re committed to keeping our clients ahead of the curve. Here’s what you need to know about OSBOR, its potential impact, and how it could reshape your shipping operations.
What is the Ocean Shipper Bill of Rights?
The OSBOR is a proposed framework designed to address longstanding pain points for shippers in their dealings with ocean carriers. Distributed by the NITL—an influential voice for industrial transportation—and discussed at the NSAC meeting on the sidelines of TPM25, this “bill of rights” outlines 14 key rights aimed at leveling the playing field. These rights focus on critical areas such as:
Pricing transparency: Clear, unambiguous pricing structures to eliminate hidden costs and surprises.
Equipment availability: Assurance that containers and other necessary equipment are accessible when needed.
Documentation accuracy: Reliable paperwork to prevent delays and disputes.
Claims resolution: Streamlined processes for addressing issues like damaged goods or missed deliveries.
Contract compliance: Holding carriers accountable to the terms they agree to.
The NITL’s goal? To foster a more equitable and efficient shipping ecosystem where shippers—especially smaller players—aren’t left at the mercy of opaque practices or disproportionate bargaining power. As the group stated, OSBOR is about “eliminating ambiguity” and ensuring “shippers and carriers benefit from clearer, more equitable practices, fostering better collaboration and efficiency within the industry.”
Why This Matters for Small and Medium-Sized Shippers
For years, small and medium-sized shippers have faced an uphill battle when negotiating with ocean carriers. Larger shippers often wield the volume and influence to secure favorable terms, while smaller businesses are stuck with rigid, boilerplate contracts that favor the carrier. OSBOR seeks to change that dynamic.
Rich Roche, Senior Vice President at Mohawk Global and an NSAC member, hit the nail on the head during the Long Beach meeting: “It’s not too much to ask, but changing the boilerplate in the service contracts [with carriers] is darn near impossible unless you’re [an] uber big shipper.” This candid assessment underscores a key challenge—and opportunity—for the industry.
By codifying these 14 rights, OSBOR could empower smaller shippers to negotiate from a stronger position. Imagine having a standardized framework that ensures predictable delivery times, fair pricing, and reliable service—without needing the leverage of a multinational corporation. That’s the vision the NITL is championing, and it’s one that could unlock significant cost savings and operational efficiencies for your business.
A Starting Point for Dialogue—or Something More?
At this stage, OSBOR is a proposal, not a mandate. The NITL hasn’t yet clarified whether it will push for federal legislation to enshrine these rights in law—potentially via the U.S. Federal Maritime Commission (FMC), which NSAC advises—or simply encourage shippers to incorporate them into private contracts with carriers. Either way, the document is already sparking conversation.
Siva Narayanan, Director of Global Logistics at Syensqo and the NITL’s ocean chair, framed OSBOR as a flexible tool for advocacy. “If you can take five of our points, take five points,” he said. “But if you can take all 14, take all 14. Whatever works for you. It’s a work in progress.” This pragmatic approach acknowledges the diversity of shippers’ needs while laying the groundwork for broader adoption.
The NITL is also developing a model ocean carrier contract to pair with OSBOR, offering a practical template for shippers to implement these rights. For now, though, the focus is on dialogue—between shippers, carriers, and regulators—to refine and promote the framework.
What OSBOR Could Mean for Your Business
At Gain Consulting, we see OSBOR as more than just a wish list—it’s a potential catalyst for rethinking how U.S. shippers approach ocean freight. Here’s how it could impact your operations:
Greater Cost Predictability
Ambiguous pricing has long been a thorn in the side of shippers. With OSBOR’s emphasis on transparency, you could gain better visibility into costs, making budgeting and forecasting more accurate.
Improved Supply Chain Reliability
Equipment shortages and delivery delays can derail even the best-laid plans. By prioritizing equipment availability and contract compliance, OSBOR could help you keep goods moving smoothly.
Stronger Negotiating Power
Even if OSBOR doesn’t become law, having a standardized set of rights gives you a starting point to push back against unfavorable terms. It’s a tool to hold carriers accountable and demand the service you deserve.
Enhanced Collaboration
As Narayanan noted, shippers are willing to be responsible partners—but carriers must meet them halfway with reliable, predictable services. OSBOR could bridge that gap, fostering partnerships that benefit both sides.
Challenges Ahead
Of course, change won’t come easily. As Rich Roche pointed out, altering carrier contracts is a Herculean task for most shippers. Carriers, accustomed to dictating terms, may resist adopting OSBOR’s principles unless compelled by regulation or overwhelming market pressure. And while the NITL’s model contract is a promising step, its success will depend on widespread adoption—a tall order in a fragmented industry.
Still, the momentum is building. The NSAC, established by Congress to advise the FMC, provides a direct line to policymakers, and the NITL’s track record of advocacy lends credibility to the effort. For shippers willing to engage, this could be a rare opportunity to shape the future of ocean freight.
How Gain Consulting Can Help
The introduction of OSBOR is a wake-up call for U.S. shippers: the rules of the game are shifting, and preparation is key. At Gain Consulting, we specialize in helping businesses like yours navigate complex supply chain challenges. Whether it’s analyzing your current carrier contracts, identifying opportunities to leverage OSBOR’s principles, or developing a strategy to optimize your shipping operations, we’re here to guide you every step of the way.
Our team of experts can:
Audit your contracts to pinpoint areas where OSBOR’s rights could strengthen your position.
Model cost scenarios to quantify the impact of greater transparency and reliability.
Advocate on your behalf in carrier negotiations, ensuring your voice is heard.
The shipping landscape is evolving, and with OSBOR, you have a chance to gain the upper hand. Let’s work together to turn this proposal into a competitive advantage for your business.
The Road Ahead
The Ocean Shipper Bill of Rights is still in its early stages, but its implications are profound. As the NITL refines the framework and solicits feedback, U.S. shippers have a unique window to influence its direction. Whether it becomes a legislative mandate or a voluntary standard, one thing is clear: the push for transparency and accountability in ocean freight is gaining steam.
At Gain Consulting, we’re excited to see where this journey leads—and we’re ready to help you capitalize on it. Contact us today to discuss how OSBOR could transform your shipping strategy and position your business for success in 2025 and beyond.
Stay tuned for updates as this story develops, and let Gain Consulting be your partner in navigating the future of freight.
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