LHCA joins 300 groups protesting shipping delays and fines
05/05/2021
The letter - which has also been signed by the North American Meat Institute and the US Meat Export Federation - says vessel-operating common carriers (VOCCs) are leaving ports with empty containers and imposing “unreasonable” charges.
It suggests consolidation of the market has led to an over reliance on a small number of carriers.
The organisations said: “Whereas shipping containers filled with imported goods are normally unloaded, sent to rural areas, filled with agricultural commodities and then shipped abroad, the lucrative freight rates paid by the import cargo, combined with congestion and delay at ports on our West and East Coasts are leading VOCCs to immediately return empty containers to their overseas ports of origin.
"Foreign markets are critical to American farmers and ranchers with more than 20% of agricultural production going abroad. It is cost prohibitive for producers to rework the supply chain and find alternative means of fulfilling their overseas contracts. This impossibility coupled with significant pricing increases explains estimates of nearly $1.5 billion in lost agriculture exports.
“These losses come on the heels of trade conflict and pandemic that have wiped away markets globally.
“We need action now; not additional studies. We ask the Department of Transportation to assist the Commission in expediting its enforcement options.”
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