Fifteen poultry and livestock feed importer buyers from the Philippines learned about the current trends in container and bulk grain shipping, along with opportunities to purchase U.S. dried distillers grains with solubles (DDGS), high-quality feed products produced by ethanol plants and exported around the world. Part of a trade mission to the Upper Midwest Aug. 28–Sept. 3, the delegation was hosted by Northern Crops Institute (NCI) and the U.S. Grains Council (USGC). The experience featured an educational procurement course on DDGS feeding practices, an industry tour and information on market sourcing and current transportation issues.

SSGA contributed to the trade promotion project through a presentation and discussion led by transportation adviser Bruce Abbe. Abbe talked about current trends and gave “how-to” advice for shipping DDGS from the U.S. to the Philippines by container or bulk shipping means. SSGA exporter member International Feed also hosted the group on a tour stop for trade discussions.

The delegation included high-level executives from leading Philippines commodity feed purchasing companies, including UNAHco Inc., CJ Phils Inc., Premium Feeds Corporation, SIDC, Universal Robina Corp-Cebu Operations, Ta-Ala Farms, Robina, Longview Agri, and Universal Felix Grains Corp.

Abbe presented information on the DDGS export market dynamics and recent trends for container and bulk shipping, basic operational steps in container shipping for DDGS supply chains, and the current situation and outlook going into 2023 for shipping.

“After two years of crippling supply chain disruptions at the ports and landside on both sides of the Pacific, we’re starting to see some improvements,” Abbe said. “But we have a long way to go. …

“On-time reliability for ocean carriers has basically stood at zero for a year and a half for all carriers. It’s starting to inch up. Instead of 100 ships waiting to berth off LA/Long Beach, it was down to nine a couple of days ago. Yet, the East Coast ports are seeing more back-ups now.”

There are signs that rates are starting to soften for U.S. importers, who saw extraordinary increases. But for exporters, the smaller increases they’ve experienced haven’t come down much yet, if at all. Container availability for exports is showing signs of improvement in some locations, not others, he said.

The future should be getting better for shippers because of the large volume of new container ships and new containers on order set to come into the global system in 2023 and 2024, Abbe added.

“Nevertheless, the ocean carriers have already started to cancel sailings again, and they learned they could make unmatched profits through high rates by keeping capacity tight,” Abbe warned. “The rail network in the U.S. also is currently facing severe capacity and network congestion issues.”

In spite of those challenges, U.S. grain exporters can and are supplying high-quality DDGS to the Philippines feed industry on a continual, near-daily basis. With infrastructure improvements underway in both countries, supply chain improvements are happening.

To manage the shipping challenges, Abbe urged the grain buyers and traders to:

• Persistently check all booking options
• Be sure to check bulk shipping, as well as containers, as bulk may be more economical;
• Know expected transit times and track all container shipments
• Maintain continual communication between suppliers and buyers

SSGA and other U.S. ag shippers will continue to pressure the transportation industry, policy makers and regulators for expanded, improved service for food and agriculture shipping. International buyers should to the same in their countries, Abbe advised.

SSGA staff have compiled a round up of current news in the container transportation industry. Click the links below to view the original stories.

A shortage of shipping containers and equipment were again common themes in reports from SSGA member exporters in SSGA’s Competitive Shipping action team meeting Aug. 10. Multiple SSGA members reported that the shortage isn’t affecting Chicago as much, but other container yards in the Midwest remain extremely short of containers and chassis. Members also reported a trend of lower surcharges and some weakening container rates. The Competitive Shipping action team meets quarterly. Contact Katelyn if you are interested in joining the action team.

The Presidential Emergency Board issued its recommendations for a new rail labor contract, suggesting a 24% wage increase over five years. This splits rail labor request for a 31.3% increase compared to the railroad offer of 17%. If the two sides cannot reach an agreement by Sept. 16, Congress may need to intervene to prevent a strike or lockout. Read the full recommendations here.

In attempt of diversifying supply chains and build on self-sufficiency in the Midwest, the North Dakota Trade Office Duluth Cargo Connect and Valley Worldwide Logistics Solutions have established a logistics network between Duluth and Europe. The network is a single source solution for domestic trucking, drayage, ocean freight forwarding, transloading, warehousing and overstuffing. Valley Worldwide will be offering direct intermodal vessel service between Duluth, Minnesota and Antwerp, Belgium via the Great Lakes and St. Lawrence Seaway, with more worldwide routings in the works. For more information, contact Ian Nicks with Valley Worldwide at Ian@valleyexp.com or 951-233-5347.

U.S. grain exports continue to be a highlight of the Great Lakes shipping season. The Great Lakes ports traded with at least 27 countries during July, according to the St. Lawrence Seaway tonnage report. Through July, the seaway system has moved 514,000 tons of U.S. grain, a 37% increase compared to 2021. Learn more here.

While shipping container fees are decreasing in most parts of the world, five U.S. ports top the list of most expensive detention and demurrage (D&D) fees. The average D&D charge at the Port of New York is $3,182, followed by Long Beach, Los Angeles, Oakland and Savannah. Read more from CNBC here.

SSGA staff have compiled a roundup of current news in the container transportation industry. Click the links below to view the original stories.

At Container xChange’s recent webinar, analysts discussed their predictions for an unconventional 2022 container shipping peak season, with massive inventory levels in warehouses as one culprit. One expert believes that issues in the container shipping market would continue even if there were no container shipments in the next six months. Read the full story recap here.

President Biden signed the Ocean Shipping Reform Act (OSRA) last month to expand the Federal Maritime Commission’s (FMC) authority to ensure a competitive and reliable international ocean transportation supply system. Requirements surrounding demurrage and detention charges, a hot topic among U.S. shippers, became effective upon the law passage on June 16. Read the full story here.

FMC Commissioner Carl Bentzel reported that the agency may need more staff to properly enforce the reforms from the OSRA. The OSRA increased funding to the FMC, but hiring enough staff will take time. Read more here.

In lighter news, here’s a story from Maritime Executive about the history of one of SSGA’s favorite topics: the shipping container.

SSGA staff have compiled a roundup of current news in the container transportation industry. Click the links below to view the original stories.

SSGA joined other several other agricultural organizations urging the U.S. House and Senate Transportation-HUD Appropriations Subcommittee to consider increasing fiscal year 2023 funding to the Federal Maritime Commission, up to the $38,260,000 authorization level included in the Ocean Shipping Reform Act. The letter preceded the House passage of the Ocean Shipping Reform Act, which is now headed to President Biden’s desk for approval. View the letter here.

The Journal of Commerce will analyze the rankings in its Top 100 Importers & Exporters report during a webcast on Thursday at 1 p.m. CST. With strong consumer spending, total containerized trade in and out of the U.S. rose 7.8 percent in 2021, with import gains in many segments, including automobiles and parts, household goods, toys, clothing, electronics and foodstuffs. JOC will analyze the changes in consumption and give a near-term outlook in the first of two-part web series. Register for free here.

BNSF Railway Company, CSX Transportation, Norfolk Southern Railway and Union Pacific Railroad must now submit additional information about their rail service recovery plans to the Surface Transportation Board (STB) after their initial submissions lacked the necessary level of detail. On May 6, the STB ordered the Class I railroads to submit service recovery plans to address service deficits. STB Chairman Martin Oberman said the plans “failed to instill confidence that the carriers have a serious approach to fixing a problem caused by their own lack of preparedness to respond to external shocks and fluctuations in demand, including especially short-sighted management of labor forces and other resources.” Read the full release here.