US ag strongly endorses Ocean Shipping Reform Act

The Specialty Soya and Grains Alliance was one of more than 100 agriculture- and forest-product companies and associations that signed onto a letter of support endorsing the Ocean Shipping Reform Act of 2021, sponsored by House members John Garamendi (D-California) and Dusty Johnson (R-South Dakota). In a press release issued on Tuesday, Aug. 10, the Agriculture Transportation Coalition (AgTC) stressed that OSRA21 “provisions addressing unreasonable ocean carrier practices should be expeditiously enacted so that U.S. agriculture will remain competitive in global markets.”

AgTC’s press release included statements from representatives of 15 ag associations, including SSGA. Darwin Rader, SSGA secretary/treasurer and competitive shipping action team chair, said:

“We are hopeful this legislation will result in changes in ocean carrier practices to allow U.S. exporters of soybeans and grain to ship their contracted goods to overseas customers in a timely manner. Inland ag exporters are very concerned with problems of export denials — from unavailable bookings to cancelled bookings to cargo rolled at the terminals — while empty containers sail right on by.”

Rader is the export manager for Zeeland Farm Services, a major soybean and grain shipper.

Excerpts from AgTC’s press release:

All levels of the U.S. government are focused on the current export and import transportation crisis. This year, over 160 Members of Congress have written urging prompt federal attention and intervention. The House Committee on Transportation and Infrastructure held a hearing on the ongoing crisis; President Biden issued Executive Order 14036 directing the FMC and the Department of Justice to act; Department of Transportation Secretary Buttigieg personally conducted a high-level port roundtable. An appropriations provision from Representative Kim Schrier’s (D-Washington) will enhance the FMC’s support of U.S. exporters/importers. The FMC is continuing its investigations and audits of carriers.

The letter’s signatories …  believe that OSRA21 is urgently needed to convert these expressions of concern into tangible change in ocean carrier practices. These include adherence to the FMC’s Interpretive Rule on Demurrage and Detention, which has gone unheeded by ocean carriers. This bill also includes an alternative to the FMC’s burdensome complaint process, with an innovative means to gain compliance with that rule by imposing upon carriers the obligation to self-police or face meaningful penalties. In addition, the bill obligates ocean carriers to carry export cargo, subject to safety and other reasonable conditions. It addresses current carrier practices which are limiting efficient use of containers, chassis and other equipment.

“Currently, according to the AgTC survey, on average, 22% of U.S. agriculture foreign sales cannot be completed,” said Peter Friedmann, AgTC executive director. “Ocean carriers are declining to carry our cargo in favor of returning so many containers back to Asia empty, while unprecedented freight rate hikes, penalty charges and unpredictable service are denying affordable, dependable U.S. agriculture export access to our best foreign markets.

“There is nothing we produce in agriculture and forest products in this country, that cannot be sourced in some other country. If we cannot deliver, affordably and dependably, our foreign customers will find — and are already finding — alternatives to U.S. exports.”