It’s just 60 miles from El Dorado Dairy Ontario, Calif., to the nation’s largest container port in Los Angeles. ButIt is not easy for the farm to get its products on a ship heading for foreign markets, which are vital to its operations.
The farm is part of one of the nation’s largest cooperatives, California Dairies IncThe milk powder is manufactured by. Southeast Asia MexicoYou can use it to make candy, baby food and other edibles. TheEach month, the company ships out 50 million pounds worth of milk powder and butter from ports. But roughly 60 percent of the company’s bookings on outbound vessels have been canceled or deferred in recent months, resulting in about $45 million in missed revenue per month.
“This is not just a problem, it’s not just an inconvenience, it’s catastrophic,” said Brad AndersonChief executive Officer of California Dairies.
National headlines have been dominated by a crisis in the supply chain for imported goods. BidenAs shoppers worry about getting presents in time, inflation rises as a result of strong demand for electronics, clothing, and couches.
YetA second crisis is underway. AmericanFarm exports
TheThe same congestion in U.S. ports as well as a shortage of truck drivers has caused some goods to stop flowing. This has left many farmers unable to ship their cargo overseas and to fulfill contract obligations before the food supply runs out. ShipsUnloading at ports now takes several weeks rather than just days. Backup shippers also want to be back in the next few days. AsiaTo pick up additional goods, which often leave. United StatesUse empty containers, rather than waiting for them to fill up. AmericanFill them with farmers.
The National Milk Producers FederationShipping disruptions costing the U.S. dairy sector nearly $1 billion in first half of this year, according to estimates. These include higher shipping costs and inventory, reduced export volumes and price deterioration.
“Exports are a huge issue for the U.S. right now,” said Jason ParkerHead of Global Trucking and Intermodal, Flexport, a logistics company. “Getting exports out of the country is actually harder than getting imports into the country.”
AgricultureAbout one-tenth America’s goods exports, and roughly 20 percent of what U.S. farmers and ranchers produce is sent abroad. TheRefrigerated trucks and railcars are all part of the intricate logistics that transport fresh goods around the world. Sometimes, these movements go unnoticed.
U.S. farm imports rose strongly in this year’s United States, after the sector recovers from the pandemic. The industry also benefits from trade deals with ChinaThis required the purchase of AmericanAgricultural products StrongGlobal demand and rising commodity prices has pushed the U.S. agriculture exports up more than 20% over last year.
StillExporters claim that supply chain issues are causing them to lose significant money. AndMany farmers now find it difficult to cope with the rising costs of materials such as fertilizer and air filters. They also struggle to find drivers and farmhands to transport their products.
Survey by The Agriculture Transportation CoalitionAccording to the Exporters Association, 22 percent on average of export sales were lost due to transportation issues.
DelaysProducts that are transported in metal corrugated containers such as cheese, butter and meat at ports can be particularly affected.
One company, Talmera USA IncThe exporter of dairy powders, milk powders, and cheese,., experienced a delay so numerous times in its shipment that the load was finally loaded on the vessel it was allocated to, after the ship left port. SeattleThe circumnavigated AsiaSeveral weeks later, he was back.
Mr. Anderson said that his company’s customers were beginning to look to suppliers in Europe, New ZealandThey will also consider other countries when purchasing U.S. milk products, despite the fact that they are highly regarded for quality. “Frankly none of that matters to the customer if we can’t get it there,” he said.
PartProblem is, shipping companies can charge much more for goods to be ferried from. AsiaTo the United States than vice versa, so they don’t want to waste time waiting for a less lucrative load departing from the West Coast.
AccordingData from FreightosAn online freight marketplace that allows you to calculate the shipping cost for a 40 foot container. AsiaThe U.S. West CoastThe price of the average home has risen to $18,730 November — more than 17 times what it cost to make the reverse trip.
AsHere, more than 80 per cent of the 434,000 20 foot containers exports from the United States are accounted for. PortOf Los Angeles September were empty — up from about two-thirds in September2020 September 2019.
Mario CorderoThe executive director of the PortOf Long Beach, said that the price differential encouraged shipping companies to get their containers “back to Asia A.S.A.P. so you can load it with import items.”
“AndUnfortunately, the American exporter is impacted by this approach,” he said.
The trucking sector is experiencing a shortage of supply, which affects farmers as truckers are able to deliver holiday gifts for better wages and longer hours than they can haul soybeans or other swine.
Tony ClaytonThe president of Clayton Agri-Marketing IncIn. Jefferson City, MoLive animals are exported to other countries for breeding. HeThe company said it is also competing in ports and airports to provide space for milk heifers and swine, as well as goats. AndNumerous livestock truckers found they could make more by hauling dry freight.
“It is a challenge,” Mr. Clayton said. “We’re all fighting and competing for those people who will sit behind the steering wheel.”
TheInfrastructure bill CongressPassed on Nov. 5. Invest $17 billion to address supply chain problems AmericanMany ports are amongst the most inefficient around the globe.
TheBill also provides funding for improving railways, roads, and waterways. It also contains a provision that will fund pop-up container yards. PortOf SavannahIn GeorgiaCongestion relief ItIn an effort to increase the number of workers in this profession, which has been a major bottleneck in supply chain operations, we will lower the age limit for truckers crossing state borders to 18 years.
In SeptemberThe U.S. DepartmentOf AgricultureThe company also said it would disburse 500 million dollars to farmers in an effort to address their transportation needs and increase material costs.
John D. PorcariThe Biden administration’s port envoy, said farm exports are a “primary focus” for the administration, and that the White HouseThe goal was to stimulate private sector firms, as well as ocean carriers, in order to improve the flow of supply chains.
The White HouseRound table meeting with farmers exporters FridayPlease see the following: Mr. PorcariPlan to go to the PortOf OaklandIn CaliforniaThis week, a major agricultural export point, is.
“We know that some sectors have had more trouble than others, and we’re working to eliminate those bottlenecks,” Mr. PorcariInterview.
WhileAlthough agricultural exporters are happy to see long-term investments in infrastructure, they still worry about the possibility of more immediate losses.
Mr. Anderson — whose company is responsible for nearly 10 percent of America’s milk supply and a fifth of American butter production — said he had been frustrated that much of the public dialogue from the government and in the media had focused more on consumer imports.
“AreToys for the kids! Christmas? AreWe going to purchase chips for autos? We think those are real concerns and they need to be talked about,” he said. “What’s not being talked about is the long-term damage being done to exporters in the world market and how that’s going to be devastating to our family farms.”
AgriculturalTo bypass congestion at ports or warehouses, exporters needed to be creative. Mr. AndersonAccording to his company, he was looking at rerouting some cargoes more than 1000 miles to the port. Vancouver.
Mike DurkinChief executive Officer of Leprino Foods Company, the world’s largest maker of mozzarella cheese, told House lawmakers this month that nearly all of the company’s 2021 ocean shipments had been canceled and rebooked for a later date. More than 100 of the company’s bookings this year had been canceled and rebooked 17 times, Mr. DurkinThis would result in five months delay for delivery.
InThe interim Leprino FoodsThis year, the company was required to pay $25 million more to keep its cheese refrigerated in carriers yards.
Source: NY Times
