While declining import volumes are reducing port congestion, reduced sailings are challenging US agriculture exporters’ ability to be dependable suppliers to global markets. The difficulties encountered in delivering import containers to inland rail ramps are creating shortages of ocean containers for agriculture exports from inland source points.
We are encouraged that the Federal Maritime Commission is demonstrating it can and will apply the authority it has had to self-initiate and enforce OSRA to end detention and demurrage abuse. Should additional authority be necessary, the AgTC stands ready to return to Capitol Hill to seek it.
If ocean carriers should have learned one thing from OSRA, Congress will not abide injury to US constituent importers and exporters. Despite vigorous carrier lobbying against OSRA, it passed overwhelmingly and rapidly. OSRA 2.0 will not be necessary if ocean carriers undertake, on their own, long-overdue initiatives to increase their own efficiency and reduce costs to their shipper customers. Just two examples of opportunities for carriers to help their ag exporters succeed as dependable suppliers (and thus dependable customers of the carriers): Review and revise chassis “box rules” that create artificial container shortages and unsustainable cost at marine and inland terminals, and invest some of their 2020–2022 financial windfalls in container tracking and other digital capability to provide accurate, real-time information to avoid ERD uncertainty, etc.
Rather than wait for Congress and the FMC to compel ocean carriers to drive supply chain efficiency, carriers should seize this opportunity to do so, in collaboration with their shipper customers. Agriculture Transportation Coalition is currently working with several carriers to accomplish improvements that are benefiting both those carriers and the ag shippers. We stand ready to work with all, in 2022 and beyond.