The United States faces a national crisis in ocean freight. Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC), describes the current situation “devastating to all U.S. agriculture exports.” Demanding enforcement of the U.S. Shipping Act, USFEC joins with the AgTC to cite ongoing practices by ocean carriers and terminal operators that deny service, limit volumes and charge unreasonable fees. Notes Friedmann, “This includes refusal to carry export cargo, cancelling export bookings/refusing new bookings, lack of appointments, changing ERD’s, lack of free time, lack of notice, all which contribute to current supply chain dysfunction.”

Forage shippers represent canaries in the transportation coal mine. It is not an exaggeration to say that no other ag sector is impacted more than the U.S. forage export industry whose combined annual exports of $1.4 billion translates to nearly 200,000 forty-foot containers. No other commodity exports as much in containers. Export forage is also the quintessential low-margin, high-volume product: even small changes in freight costs have an outsized impact on forage shippers.

With attention drawn to this issue by USFEC and other AgTC members, ocean carriers and terminal operators are now being investigated by the Federal Maritime Commission. Specifically, the FMC has been asked to look at  

• Ocean carriers denying export cargo

• Unfair detention and demurrage charges

• Lack of export container availability

• Unreasonable container return policies

Forage exporters cannot tell our overseas customers to “come back tomorrow.” The orders that are lost may stay lost as foreign buyers seek supply that is more reliable. There is a long-term impact to this crisis that demands immediate attention.

The Agriculture Transportation Coalition (AgTC) works to ensure a strong transportation system which allows U.S. ag exporters to be competitive in the international market.