The maritime carriers’ export decisions at these ports are under investigation by the Federal Maritime Commission. Commissioners are examining whether this denial of trade is in violation of the 1984 Shipping Act. This investigation comes at a time where China’s exports hit records. The full year trade surplus reached $535 billion, the highest since 2015.
U.S. agricultural export containers take longer to process because the product needs to be unloaded and the container needs to be cleaned. The route from the U.S. to China is also a fraction of the price ($715 a container), so carriers can afford to return empties instead of containers full of agriculture.
The Northwest Seaport Alliance, tells CNBC it also suffered a large loss in exports. In 2019, the ports moved out 913,332 containers of full exports. In 2020, that number dropped to 790,620 containers.
FMC Commissioner Sola said he is also keeping an eye on the potential jobs impact.
“This assertion warrants review. We support our longshore workers. Indeed, that is why I have attempted to draw attention to the loss of work generated by the cessation of cruises to our cruise ports across the nation and speak out for the safe resumption of cruising,” he said.