SSGA chairman addresses White House Office of Outreach and National Economic Council
Rob Prather, SSGA chairman and chief strategic ambassador for Global Processing of Kanawha, Iowa, represented all exporters in the container crisis when he commented to the White House that the Ocean Shipping Reform Act, introduced by Sens. Klobuchar (D-Minn.) and Thune (R-S.D.), as well as an associated version that had previously passed the House of Representatives, would help his business.
After some easing of the availability of containers in the runup to Christmas, Prather said things have tightened again. Exporters in the region report being told that they couldn’t get a booking for six weeks.
That’s why reforming the Ocean Shipping Act is so important. Prather said helping third parties file complaints can bring more action and having companies report their empty containers will help understand if a company is shutting down a market for returns or making some supply available. The Federal Maritime Commission (FMC) needs to be able to have a streamlined review of complaints, not a drawn-out process subject to brinksmanship. They need more resources to pursue complaints and then act to prevent detention/demurrage bills or unexpected fees from sinking a deal.
Right now, regional exporters report working at as little as 60 percent capacity, during the peak season for exports.
The high-value grains and oilseeds market depends on on-farm storage. If a crop isn’t moved from storage in the bins, it stays on the farm. This is about food security, and those of us in the rural United States who connect with and feed the foreign customer should not be left out. This is about the United States being a reliable supplier. All those ideas are in doubt or more difficult today.
The global container shipping crisis will be discussed at Transportation Go! March 3-4 in Milwaukee, where FMC Chairman Dan Maffei and other leaders in the agricultural supply chain will gather for in-depth discussions about the global supply chain and how it affects the vital movement of agricultural products both domestically and around the world. It will be an opportunity for attendees to weigh in on solution-seeking ideas and identify priorities. More information is available at www.transportationgo.com.
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