After two years of agriculture exporters enduring “ocean carriers’ <a href=”https://www.npr.org/2021/07/23/1019496567/farmers-have-a-big-problem-on-their-hands-they-cant-find-a-way-to-ship-their-stu”>systematic neglect of exports </a>in favor of higher value import cargo,” Agriculture Secretary Tom Vilsack is offering key changes to the Federal Maritime Commission’s (FMC) proposed rulemaking to define an unreasonable refusal to negotiate or deal with respect to vessel space accommodations.
According to Vilsack, agricultural shippers over the past two years have continually dealt with broken export contracts, canceled bookings, inadequate receiving windows, and shortages of empty containers and other equipment. These issues, he noted, reduced prices paid to producers, compromised bottom lines for ag companies, and damaged U.S. agriculture’s standing with global customers.
After repeatedly alerting USDA, shipper and producer groups raised their concerns in comments to the FMC. Those concerns are reflected in Vilsack’s recommendations.
Beyond the issue at hand, Vilsack expressed the need for FMC to promote competition in the industry and to consider the carrier consolidation and alliances that has occurred in recent years.
Currently, three global companies, made up entirely of foreign companies, control almost all of ocean freight shipping. They have formed global alliances that now control 80% of global container ship capacity and control 95% of the critical East-West trade lines.
https://www.feedstuffs.com/news/vilsack-presses-fmc-changes-ocean-carrier-proposal