Shipping Act Reform Bill Could Make US Rice Exports More Competitive
USA Rice
WASHINGTON, DC -- This week, Reps. John Garamendi (D-CA) and Dusty Johnson (R-SD) introduced the Ocean Shipping Reform Act of 2021, a bill focused on prohibiting shipping companies “from unreasonably declining export cargo bookings if the cargo can be loaded in a safe and timely manner.”
Since early 2020, U.S. exporters of all types have faced challenges in timely, efficient delivery of goods to markets overseas, particularly southeast Asia, due to container shortages and port congestion caused by the COVID-19 pandemic and staff shortages. U.S. agricultural exports have been particularly impacted because of the inherent necessity of the products – food, animal feed, or something else perishable – that is relied upon in a timely manner by importers.
As originally reported in the USA Rice Daily, March 17, 2021, Chinese shippers are paying generous premiums for shipping containers to be returned to China without being reloaded with U.S. goods. Additionally, fees and penalties continue to rack up for U.S. exporters at no fault of their own.
These persisting shipping woes continue to negatively impact U.S. agricultural exports, including rice, which ultimately led to the introduction of this legislation. The co-sponsors say they have bipartisan, bicameral support for the bill.
According to the Agriculture Transportation Coalition, “…on average 22 percent of U.S. agriculture foreign sales cannot be completed due to ocean carrier rates, declining to carry export cargo, unreasonable demurrage and detention charges, and other practices.”
Overhaul of these regulations does not come easily or often but may just happen given the incredible amount of attention this issue has garnered from the Biden Administration through an Executive Order, Congressional hearings and legislation, and advocacy by the U.S. agricultural industry. The whole industry, including USA Rice, is supportive of the measure, with more than 100 organizations and companies signing onto a letter of support.
“USA Rice is proud to support the Ocean Shipping Reform Act, which we believe will address many of the issues rice exporters have been facing for far too long,” said Chris Crutchfield, a California miller and exporter. “We thank Congressmen Garamendi and Johnson for their efforts and look forward to passage of this important legislation.”