Identifying Export Problems for Agriculture Produce
The Agriculture Transportation Coalition (AgTC) is urgently looking for examples of carrier denial and cancellation of export bookings. Both the United States Congress and Federal Maritime Commission want to intervene to protect agriculture exporters so they are looking for examples of communications from carriers advising they will not take export bookings or they are declining more bookings. Please send examples to: info@agtrans.org.
Background: One carrier just listed seven Asian countries to which they will not carry export cargo, even with a confirmed booking, and other carriers are doing the same.The U.S. saw at least $1.3 billion in potential agriculture exports rejected at major ports on the East and West coasts, from July to December in 2020. Rejections were particularly heavy in December as the estimated total value of lost reported trade from the three ports of Los Angeles, Long Beach, and New York-New Jersey was an estimated $257.5 million.
While the maritime carriers’ export decisions at these ports are under investigation by the FMC, commissioners are examining whether the denial of trade is in violation of the 1984 Shipping Act. Maritime carriers have been favoring sending back empty containers to China in an effort to quickly fill the boxes so they can be used in the more lucrative China to U.S. route.
Please contact your Western Overseas representative if you have any questions.
