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

Federal Maritime Commission Rules Criticized by Congress

11/10/2022

Representatives David G. Valado (R-CA), Jim Costa (D-CA), Adrian Smith (R-NE) and other co-sponsors of the Ocean Shipping Reform Act of 2022 have addressed a letter to the Federal Maritime Commission protesting the regulations framed by the Commission.

 

According to press reports, the regulations provide for undue latitude on the part of ocean freight companies to reject export cargos on the basis of “profitability and compatibility with business development strategy”.

 

Peter Friedmann, Executive Director of the Agricultural Transport Coalition, is urging the Federal Maritime Commission to revise the proposed rule and address issues that should have been resolved following passage of the Ocean Shipping Reform Act.  During the COVID pandemic, shippers took advantage of U.S. demand to return empty containers to Asia, depriving U.S. agriculture and manufacturers of the opportunity to export goods.

 

Pork, Chicken paws and fruit are shipped westbound across the Pacific, requiring availability of refrigerated containers that are in short supply.  This reality coupled with the profit motives of ocean shippers has denied many exporters business opportunities and the resulting inflation in transport costs has limited markets in Asia for U.S. products.


 
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