Lawmakers express concern about carriers declining to ship
Reps. Jim Costa, D-Calif and Rodney Davis, R-Ill., are among a bipartisan group of colleagues voicing concern over reports that certain vessel-operating common carriers are declining to ship U.S. agricultural commodity exports from U.S. ports.
The lawmakers sent a letter about the issue to Michael A. Khouri, chair of the Federal Maritime Commission, according to a news release.
Vessel-operating common carriers serve as an integral link between American producers and overseas customers, lawmakers said, without which contracts cannot be met and the ability to compete in or even access foreign markets is threatened.
“California is a leading exporter of agricultural commodities, totaling over $42 billion in annual receipts,” Costa said in the release. “It is critical that we resolve supply chain issues so our producers can quickly ship healthy, nutritious food around the world. Food is a national security issue and we cannot allow for disruptions to this system. This letter sends a strong bipartisan message to quickly investigate and resolve any issues that impact our economy and ability to feed the world.”
“International trade and export markets are a major source of income for American farmers and producers,” Davis said in the release. “That’s why reports of VOCCs declining to ship American agricultural products are so concerning. These supply chain issues may create financial problems for Illinois farmers and agricultural companies at a time when they need certainty and stability more than ever. I urge the Federal Maritime Commission to investigate these reports so we can find out if regulatory action needs to be taken.”
Over the past year, American producers, exporters, and entire economic sectors have grappled with widespread delays, bottlenecks, and increasing fees at our ports, lawmakers said. These challenges are made worse by reports that VOCCs are delivering shipments to U.S. ports and then electing to leave without refilling empty containers with American goods for export. Such activity constricts entire supply chains and propels trade to move only in an inbound direction, lawmakers said.
In March 2020, the Federal Maritime Commission launched Fact Finding No. 29, “International Ocean Transportation Supply Chain Engagement,” to investigate all the congestion, bottlenecks, and fees seen at our ports. In November, Fact Finding No. 29 was expanded to include reports of the decline to ship American exports.
