SSGA joins ag associations in plea to President Biden

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The Specialty Soya and Grains Alliance joined 70 other agriculture associations this week in an urgent plea to President Biden for intervention into the container shipping crisis that has severely injured food and other U.S. ag and forestry exports that our international customers are depending on. 

In the letter sent Wednesday, the group requested that provisions available to the Federal Maritime Commission (FMC) via the Shipping Act and other government tools “be immediately applied to stem the current ocean carrier practices that are so damaging to our agricultural products.” 

U.S. agricultural exporters’ access to international markets is being jeopardized by this unprecedented dysfunction and cost of ocean transportation services, which includes unreasonable and unjust practices such as the rejection of U.S. agricultural cargo by ocean carriers who are shipping empty containers back overseas to keep up with the high demand for U.S.-bound imported goods. 

“The only way to get out of this is for ocean carriers to return to previous levels of taking containerized exports out of the U.S. instead of such a high percentage of empty containers,” said Darwin Rader, SSGA’s secretary/treasurer and competitive shipping action team chair. “There’s a lot of frustration among U.S. exporters. We have to keep pushing as hard as we can for carriers to treat U.S. exporters fairly to help restore the balance of trade.” 

In October, SSGA was one of the first national agricultural associations to shine a light on the disruption of the food supply chain and other critical problems facing containerized ag exports after members began to be informed that some ocean carriers were suspending containerized and other overseas ag shipments. 

Earlier this month, SSGA representatives had the opportunity to give testimony to the FMC, along with other national ag organizations. And last week, FMC announced it had issued an information demand to ocean carriers and marine terminal operators to answer questions about policies and practices that have contributed to this crisis. 

The letter to President Biden, organized by the Agriculture Transportation Coalition (AgTC), points out that ocean carriers are enjoying their most profitable period in decades, “charging unprecedented freight rates (and) imposing draconian fees on our exporters and importers,” while potentially irreversible damage is being done to the U.S. companies that ship containerized agricultural products. 

The letter was also sent to USDA Secretary Tom Vilsack, who was confirmed on Wednesday, along with Transportation Secretary Pete Buttigieg, Council of Economic Advisors Chair Cecilia Rouse and Federal Maritime Commissioner Michael Khouri. 

To read a copy of the letter, go here.. AgTC has an overview of the current export crisis here.

Federal Maritime Commission demands information from carriers

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SSGA applauds investigation, which includes marine terminal operators

The Specialty Soya and Grains Alliance applauds last week’s Federal Maritime Commission decision to issue an information demand to ocean carriers and marine terminal operators to answer questions on detention and demurrage practices, as well as policies and practices related to container returns and container availability to exporters.

In a press release issued Feb. 17, the Federal Maritime Commission (FMC) announced that Commissioner Rebecca F. Dye issued the order to determine if “ocean carriers operating in an alliance and calling the Port of Los Angeles, the Port of Long Beach and the Port of New York & New Jersey” are meeting their legal obligations, along with marine terminal operators (MTOs) at those ports. According to the FMC press release:

The orders are being issued under the authority Commissioner Dye has as the Fact Finding Officer for Fact Finding 29, “International Ocean Transportation Supply Chain Engagement.”  …

Failure of carriers and MTOs to operate in a way consistent with the Interpretive Rule on Detention and Demurrage that became effective on May 18, 2020, might constitute a violation of 46 USC 41102(c) which prohibits unjust and unreasonable practices and regulations related to, or connected with, receiving, handling, storing, or delivering property.

Information received from parties receiving demands may be used as a basis for hearings, Commission enforcement action or further rulemaking.

In October, SSGA was among the first national agricultural associations to shine a light on the disruption of the food supply chain and other critical problems facing containerized ag exports after members had been informed that some ocean carriers were suspending containerized and other overseas ag shipments in order to keep up with import demand of goods from Asia.

“In their haste to meet increased demands for foreign imports to the United States, the ocean carriers have left U.S. ag exporters behind while clogging the ports and disrupting the supply chain throughout the system, including rail and trucking,” said Eric Wenberg, SSGA executive director. “That’s why the Federal Maritime Commission needed to step in. But more needs to be done.

“Now, ocean carriers and marine terminal operators must cooperate with the FMC, and the hope is this can be resolved quickly so our members’ products and ingredients can get to the foreign food manufacturers who have been patiently waiting for them.”

On Feb. 9, SSGA representatives had the opportunity to give testimony to the FMC, along with a large contingent of national ag organizations, including National Grain and Feed Association and the Agriculture Transportation Coalition.

For more on the container shipping crisis, see the latest IP-ODCAST, in which SSGA Secretary/Treasurer and Competitive Shipping Action Team Chair Darwin Rader spoke about the ongoing situation.

SSGA speaks up for identity-preserved farmers in D.C. testimony

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Eric Wenberg tells USTR committee farmers need more market opportunity

Identity-preserved (IP) crop farmers were represented at a hearing Wednesday about China’s compliance with its commitments to the World Trade Organization (WTO), regarding China’s current zero threshold presence limit placed on imports of non-genetically modified (non-GM) field crops.

On behalf of the Specialty Soya and Grains Alliance (SSGA) and with coordination and support of the U.S. Soybean Export Council (USSEC) and American Soybean Association (ASA), SSGA Executive Director Eric Wenberg provided testimony to the Trade Policy Staff Committee (TPSC) in preparation of the Office of the United States Trade Representative’s (USTR) annual report about China’s compliance with WTO rules. Wenberg was one of six individuals providing testimony on a range of issues, including intellectual property among others.

Non-GM food variety soybeans from the United States have been excluded from Chinese imports, although genetically modified soybeans are allowed for import, due to China’s lack of a nonzero low level presence threshold allowing for biotech soybeans to be mixed in.

“Farmers growing identity-preserved and non-GM crops must abide by stringent standards to produce specific varieties and traits to produce food for customers around the globe,” Wenberg said. “They deserve an additional market opportunity for their products. The soybean industry’s concern about this issue helps draw attention to the need to see a solution to this problem along with the other barriers to U.S. product sales. According to customs and trade data, food variety soya exports to all destinations for IP can reach $1.7 billion (2018), but we could sell more if the China market was open to us.”

IP soybeans and specialty grains are grown coast-to-coast, but are predominately exported from North Dakota, Minnesota, Iowa, Illinois, Indiana, Michigan, Ohio, Arkansas and Wisconsin.

About Specialty Soya and Grains Alliance
SSGA is a national alliance of companies and producers focused on production, processing and shipping of specialty soya and grains worldwide. Its mission is to provide resources that communicate the quality, diversity and availability of their products and be a voice for food varieties in field crops.