News Logistics
Flag out at US dairy exporters over the approach of shipowners
US dairy exporters are happy and relieved that President Biden has signed the Ocean Shipping Reform Act (OSRA) to fight undesirable practices that hurt agricultural exports. These problems make it difficult for American agriculture to compete.
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The Osra should come into force next year, but when exactly is still unclear. The dairy exporters, united in the US Dairy Export Council (USDEC), are therefore calling on members of Congress and the Senate to keep up the pressure. Exporters are eagerly awaiting a return to normal export opportunities.
Competitive on price, not on options
In recent years, American products have often been very competitive in terms of price on the world market, but American suppliers still found it difficult to do business because there was no guarantee when or sometimes whether their product would be delivered. This affected not only dairy products, but also other goods, such as meat and grain.
Shipowners increasingly unreasonable
Now there are all kinds of logistics problems worldwide, but the major shipowners that control global maritime transport have, according to the complaining American exporters, been behaving increasingly unreasonably in recent years. For example, they often prefer to return empty containers from American ports to China in particular, just to maintain speed. If they were unable or unwilling to take the full containers of milk powder, for example, exporters often had to pay high parking fines for their waiting containers. The logistical burden was thus shifted onto the shoulders of the exporters, costing them billions.
Report empty containers during inspection
They won a hearing for their problems in politics, both in Congress and the Senate, after which Osra was created. This will tackle the major shipowners. For example, they will soon have to send the shipping inspectorate (Federal Maritime Commission, FMC) every three months a statement of the number of full and empty containers leaving American ports, to what destination and further details. Anyone who is caught engaging in undesirable behavior (refusing or discouraging export cargo) can be fined without judicial intervention.
Many exporters believe it is high time the US government intervened, as the major shipping lines are now controlled by just three 'alliances', with only eleven shipping companies remaining. The feeling is that they have actually become too powerful.