SSGA supports Federal Maritime Commission’s investigation

FMC to look into shipping practices that have disrupted U.S. ag exports

The Specialty Soya and Grains Alliance (SSGA), which recently voiced concern about major disruptions in the agricultural export supply chain, applauds the Federal Maritime Commission’s decision to expand its fact-finding authority and investigate ocean carrier and marine terminal practices that are leading to delays and other hardships.

The FMC is investigating whether “potentially unreasonable” policies and practices related to detention and demurrage, export container return practices and export container availability are in violation of the U.S. Shipping Act.

“The time has come to resolve the most serious impediments to port performance. …” Commissioner Rebecca Dye said Friday in an FMC statement. “The Order emphasizes I, as Fact Finding Officer, have all enforcement options at my disposal to address the crisis that exists in our major port gateways.”

SSGA also congratulates and thanks the Agriculture Transportation Coalition (AgTC) and its members in efforts to brief commissioners, members of Congress and other officials in federal and state government about practices that are greatly hindering the timely export of agricultural products, especially from rural and inland suppliers in the Upper Midwest.

Last month, after hearing concerns from its members, SSGA raised the matter that a major container ocean carrier had informed exporters that it was suspending overseas agricultural container shipments from North America. Rather than reposition empty containers to inland marketplaces such as Minneapolis for critical food and ag products, containers would immediately and directly be sent back to Asian shipping centers, forgoing any U.S. export shipments to keep up with demand for high-value consumer imports.

Besides bookings being canceled and denied, the supply chain of agricultural exports has been disrupted by lack of communication about changes in early return dates deadlines, inefficient use of free time, lack of notice and rejected cargo, as well as by extreme costs in unwarranted demurrage and detention penalty charges.

SSGA joins AgTC in calling for a prompt response and vigorous enforcement of the law in order to quickly stop the bleeding and heal the injury caused by these dysfunctional practices at a critical time for export shipments to serve overseas food-manufacturing customers.

“Our members have heard from customers in Asia that they question whether the United States and its agricultural exporters can continue to be reliable suppliers based on the difficulties of intermodal shipping today,” SSGA Executive Director Eric Wenberg said. “Ocean carriers need to work with us to solve these transport problems and get our goods back to Asian ports. The U.S. reputation of being a strong exporter of quality food to foreign customers is on the line. We have to act.”

SSGA will continue to reach out to and work with government agencies and officials and industry allies to keep these issues on their radar until they are resolved.