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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Port Congestion and Container Shortage Limit Agricultural Exports

10/06/2021

Year to date, the Port of Los Angeles has processed 30 percent more incoming cargo than during the corresponding period in 2020. An added complication is that shipping companies are returning empty containers from West-coast ports to Asia to be refilled with goods.  This is depriving the agriculture sector of the opportunity to fill containers with agricultural products.  Exports from the Port of Los Angeles were down 23 percent from 2020 according to Gene Scroka, executive director of the Port of Los Angeles.  He noted that repositioning costs for containers are soaring and shipping companies require a 24-hour turnaround to be loaded on a westbound vessel. It is estimated that due to port delays 350,000 twenty-foot container equivalent units are aboard vessels awaiting unloading berths.

 

U.S. is not the only nation experiencing problems with high shipping costs and logistic restraints. The Australian grape harvest has been impacted by non-availability of containers.  The nation is expected to produce 210,000 metric tons in marketing year 2021-2022, up five percent from 2020-2021 but will be unable to achieve the forecast export volume of 130,000 metric tons compared to an export record of 150,000 metric tons for the 2019-2020 season.


 
Copyright © 2021 Simon M. Shane