For US red meat exporters, one of most critical issues we will be watching in 2024 is the extent to which West Coast ports win back the discretionary import cargo that shifted to East and Gulf Coast ports over the past couple of years. While our industry certainly relies on ports on all three coasts, the West Coast is especially important for suppliers moving high-value chilled beef and pork to major Asian export markets. A rebound in import cargo arriving on the West Coast is essential for maintaining the outbound service options that allow US suppliers to serve their chilled meat customers.
Moving red meat by rail has also gained more traction in recent years, mainly from inland locations to major container ports. Service options are now emerging that could carry more red meat products to their final destination, especially to processors and distributors located in Mexico.
Red meat exporters are also closely watching the implementation of the Ocean Shipping Reform Act of 2022 (OSRA-22), especially the proceedings on accommodation of export cargo and detention and demurrage charges. OSRA-22 provided a solid road map for tackling obstacles that hampered exporters during the COVID-19 pandemic, but much work is still to be done at the regulatory level to ensure that OSRA-22 translates to smoother and more reliable movement of export cargo.