Tag: dairy ports

U.S. Dairy Welcomes End to Port Strike, Urges Swift Conclusion of Contract Negotiations

Posted on by Theresa Sweeney

The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) today welcomed news that the labor strike affecting East and Gulf Coast ports has come to an end, allowing port operations to resume. The two organizations emphasized the importance of quickly finalizing contract negotiations to provide long-term certainty for U.S. dairy exporters.

“We are grateful to the Biden Administration for its important role in getting the parties to return to work and resume port operations,” said Krysta Harden, president and CEO of USDEC. “This is a crucial step in ensuring that U.S. dairy products can continue to reach our international customers. We encourage both sides to continue their negotiations and reach a final agreement that protects the supply chain and strengthens the reliability of American exports.”

The dairy industry has been severely affected by the disruptions, as $1.7 billion in dairy exports flow through the East and Gulf coast ports each year. The three-day work stoppage has had ripple effects throughout the export supply chain, with dairy exporters reporting cancelled sales and added time and costs to reroute products.

“We still need the contract negotiations to conclude swiftly,” said Gregg Doud, president and CEO of NMPF. “International customers of U.S. dairy products need certainty that their orders will arrive on time, and dairy producers can’t afford further disruptions.”

Dairy exporters experiencing challenges with rerouting or repositioned equipment should reach out to Tony Rice (trice@nmpf.org) with questions.

NMPF, USDEC Call for Immediate Government Intervention to Resolve Port Labor Strike

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) called on the Biden Administration to immediately intervene in the port labor strike that began at 12:01 AM EST today at East and Gulf coast ports. The dairy organizations warned that this disruption could have a devastating impact on American dairy farmers and exporters who rely on the smooth functioning of these ports to get their products to international markets.

“The administration must act now to bring both sides back to the table. The stakes are too high,” said Gregg Doud, president and CEO of NMPF. “This strike puts the livelihoods of American dairy farmers and the strength of our supply chain at risk. The administration needs to step in and end the strike before further damage is done.”

The U.S. dairy industry relies heavily on ports to maintain access to global markets. In 2023, over 530,000 twenty-foot equivalent units of dairy products, valued at $1.7 billion, were shipped through East and Gulf ports, accounting for 21% of total U.S. dairy exports by volume. The ongoing strike directly jeopardizes $32 million in dairy exports per week, with additional indirect consequences looming as exporters are forced to reroute shipments and face rising transportation costs.

“Global customers depend on the reliability of U.S. dairy products,” said Krysta Harden, president and CEO of USDEC. “Delays caused by this strike not only risk damaging those relationships but also severely impact perishable dairy products that require timely delivery. The negotiating parties need to come together to find a resolution and ensure port operations resume as soon as possible.”

Dairy exporters experiencing challenges with rerouting or stuck shipments should reach out to Tony Rice (trice@nmpf.org) with questions.

NMPF Engages on Supply Chain Solutions

Posted on by Theresa Sweeney

As supply chains struggle to fully recover from the pandemic, NMPF continued to engage Congress and the administration on ways to improve ocean and freight shipping.

Representative John Garamendi, D-CA, introduced the Ocean Shipping Competition Enforcement Act on April 8. Supported by NMPF, the bill would allow the Federal Maritime Commission to block anti-competitive agreements among ocean common carriers and maritime terminal operators – an important step in leveling the playing field with dairy exporters.

Additionally, NMPF joined partner organizations in sending two letters from industry urging the U.S. government to address a pair of ocean shipping concerns.  NMPF joined leading agriculture and retail organizations March 24 in calling for the administration to help resolve the ongoing West Coast port labor negotiations. Ocean terminal operators and workers have made little progress on a new labor agreement since the last contract expired over ten months ago. U.S. dairy exporters need the two parties to reach an agreement so that West Coast ports can return to operating at full capacity, a message that NMPF continues to relay on Capitol Hill.

Separately, NMPF joined the Agriculture Transportation Coalition in sending a letter to Representatives Dusty Johnson and John Garamendi, asking the OSRA co-sponsors to direct the maritime commission to address fees being incurred at rail depots for factors outside of dairy exporters’ control. Although OSRA required a stop of unwarranted fees at ocean ports, railyards currently fall outside of the commission’s jurisdiction. NMPF and its allies are advocating for Reps. Johnson and Garamendi to formally clarify the authority of the maritime commission under the OSRA to regulate these charges and facilitate more efficient and fair ocean shipping.

NMPF Presses for Supply Chain Progress

Posted on by Theresa Sweeney

NMPF and U.S. Dairy Export Council (USDEC) leadership met with Federal Maritime Commission (FMC) Chairman Daniel Maffei on Oct.13 to discuss the implementation of the Ocean Shipping Reform Act and ongoing shipping challenges. The organizations touched on the results of a recent NMPF-USDEC membership survey and the need for further FMC actions to improve shipping flow dynamics, as well as relayed information on persistent backlogs at key ports nationwide.

The organizations followed the meeting with comments filed to the maritime commission Oct. 21, giving input to the agency as it starts rulemaking on prohibiting ocean carriers from unreasonably refusing to deal or negotiate with respect to vessel space accommodations. Given the severe shipping challenges that many dairy exporters have dealt with in the past two years, NMPF sees these proposed rules as a positive step. NMPF supports the agency’s stance that ocean carriers should outline their export strategies, which would balance negotiations and allow shippers to better understand how carriers operate.

Finally, California Governor Gavin Newsom of California on Sept. 30 signed Assembly Bill 2406 into law, placing new limits on the ability of ocean carriers to charge detention and demurrage fees to exporters and truck drivers that were incurred outside of a shipper’s control. NMPF and USDEC support the bill, sending letters in March and August to California Assembly Transportation Committee leadership and Newsom, respectively.

NMPF Leads on Supply Chain Issues in White House, USDA, Congressional Engagement

Posted on by Theresa Sweeney

NMPF staff joined USDEC leadership engaging policymakers in meetings at the White House and USDA, as well as with leading members of Congress, in meetings May 12 on export supply chain issues. The group underscored the importance of the pop-up sites USDA launched earlier this year in Oakland and Seattle, and emphasized additional potential remedies, including:

  • Preferential port access for ocean carriers that maximize agricultural export carriage
  • Resuming the weekly Ocean Shipping Container Availability Report
  • 24-hour ag export pop-up sites at inland ports; and
  • Dual-turn facilitation of containers. A dual-turn allows containers delivering imports to an inland location to be provided directly to a nearby export-focused shipper, rather than being returned empty to the coast.

On May 25 USDA announced that it would begin accepting applications for the Commodity Container Assistance Program (CCAP) at the ports of Oakland and Seattle. Under the program, the Farm Service Agency (FSA) is providing a $125 per container payment to assist exporters with the additional logistical expenses associated with picking up empty shipping containers to be filled with agricultural commodities and will also provide payments of $200 per dry container and $400 per refrigerated container to help cover additional logistical costs associated with moving the shipping container.

NMPF touted this additional step to support dairy exports as president and CEO Jim Mulhern noted, “While we continue to seek solutions from the carriers and from Congress, these steps by USDA demonstrate their understanding of our industry’s challenges. We feel they are positive, focused investments that will offer immediate relief to our dairy exporting cooperatives.”

NMPF remains among the most active agricultural industry voices pushing for progress to resolve the export supply chain crisis through a full-spectrum approach, engaging policymakers, driving policy and educating the public.

NMPF also commended a House bill introduced on May 13 by Reps. Angie Craig (D-MN) and Dusty Johnson (R-SD) that would create a dedicated task force within USDA designed to support American agriculture by shoring up the supply chain, increasing government coordination and preventing future issues. The bill unanimously passed the House Agriculture Committee on May 18. The language in this stand-alone bill parallels language in the existing COMPETES Act, now in conference.

Finally, NMPF’s senior vice president of trade policy, Shawna Morris, addressed dairy industry concerns as part of a May 18 webinar, hosted by Hoard’s Dairyman. Shawna focused on NMPF’s policy efforts. The lively and informative panel, which remains available for viewing, included perspectives from the Port of Oakland, a dairy exporter and an expert academic.

U.S. Dairy Supports New USDA Container Program for Ag Exports

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today welcomed the U.S. Department of Agriculture’s (USDA) announcement to offer additional support to American agriculture exporters through the new Commodity Container Assistance Program (CCAP). The initiative will provide funding from the Farm Service Agency (FSA) to exporters to reduce the costs of sourcing containers at the Oakland and Seattle-Tacoma ‘pop-up’ port locations.

“Dairy producers and other agriculture exporters have been clamoring for relief from these ocean shipping challenges for nearly two years,” said Jim Mulhern, president and CEO of NMPF. “While we continue to seek solutions from the carriers and from Congress, these steps by USDA demonstrate their understanding of our industry’s challenges. We feel they are positive, focused investments that will offer immediate relief to our dairy exporting cooperatives.”

“We are grateful to see Secretary Vilsack and USDA taking a leadership role in addressing these port and ocean freight challenges that dairy producers are facing. I am impressed with the speed and innovative approach with which USDA has moved this pop-up concept into operation,” said Krysta Harden, president and CEO of USDEC. “We will continue working with USDA and its interagency partners in pursuing solutions to the supply chain challenges that impact the bottom line of dairy exporters and the U.S. workers and foreign consumers who rely upon American dairy exports.”

As port terminal operations have become congested and ocean carriers have prioritized shipping empty containers back to Asia from west coast ports, agriculture exporters have struggled to obtain containers from the carriers, to secure reliable vessel bookings, and to overcome obstacles to delivering goods to the ports to meet vessel departures timelines. The pop-up sites are intended to offer off-terminal locations for empty container storage, increasing access for agriculture shippers to use them and freeing up port terminal space for freight operations. At the pop-up sites, exporters can transload their commodities into the containers (both dry and reefer) and store them on property until the vessel booking earliest return dates are announced, enabling more efficient drayage delivery to the ports. The FSA’s payments will help to cover the costs of moving the containers between the ports and the pop-up yards, as well as the storage at the pop-up site.

NMPF and USDEC are working with USDA to identify key port locations, including at inland terminals, to replicate the pop-up initiative.

NMPF Presses for Supply Chain Fixes

Posted on by Theresa Sweeney

NMPF welcomed progress on legislation to address the supply chain challenges facing U.S. dairy exporters this month.  The U.S. Senate passed the Ocean Shipping Reform Act of 2022 (OSRA) by voice vote on March 31, following the Senate Commerce, Science and Transportation Committee’s March 22 unanimous approval of the bill. Working with the U.S. Dairy Export Council (USDEC) and a coalition of agriculture organizations, NMPF contributed to shaping the bill’s language and worked to secure cosponsors for the measure.

In addition to the standalone bill led by Senators Amy Klobuchar (D-MN) and John Thune (R-SD), the House-passed version of OSRA has been included in the America COMPETES Act (H.R. 4521), a bill soon headed to conference with the Senate’s U.S. Innovation and Competition Act (S. 1260). Congress hopes to determine a path toward reconciling differences in the two bills within the next month.

NMPF also continues to work closely with its allies in Congress to ensure that regardless of its final legislative form, OSRA’s benefits address the harmful practices of foreign-owned ocean carriers and help alleviate the supply chain congestion. Shipping disruptions have contributed to well over $1.5 billion in added costs and lost sales for dairy exporters in 2021 alone.

NMPF’s Jaime Castaneda highlighted this need in a March 17 roundtable hosted by the U.S. House of Representative’s Problem Solvers Caucus. Coordinated by Reps. Jim Costa (D-CA) and Dusty Johnson (R-SD), bipartisan lawmakers gathered a small group of industry representatives, including NMPF, to identify additional steps necessary to address the supply chain crisis. Castaneda joined the panelists in urging Congress to tackle immigration reform and quickly pass OSRA as well as the Ocean Shipping Antitrust Enforcement Act (H.R. 6864), which NMPF has endorsed.

USDA also announced March 18 a new partnership with the Northwest Seaport Alliance (NWSA) on a plan to enhance access to a 49-acre “pop-up” site to accept dry and refrigerated containers for temporary storage. The move is intended to reduce operational hurdles and costs at the ports of Seattle and Tacoma and allow the agriculture industry’s containers to be loaded more quickly onto ships. NMPF is working with USDEC and USDA to identify additional pop-up locations in other regions throughout the United States.

NMPF, USDEC Praise Partnership to Ease Port Congestion in Northwest

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) praised the launch today of a new partnership between the U.S. Department of Agriculture (USDA) and the Northwest Seaport Alliance (NWSA) aimed at easing port congestion and restoring more reliable shipping access for U.S. agricultural exporters.

The initiative builds on the Biden administration’s ongoing efforts to address the export supply chain crisis and USDA’s leadership in prioritizing the needs of agricultural exporters. USDA and NWSA will enhance access to a 49-acre “pop-up” site in Seattle to provide staging ground storage for both dry and refrigerated containerized agricultural exports to facilitate their quick loading onto shipping vessels destined for overseas markets.

A similar “pop-up” site was launched at the Port of Oakland on March 1 and has helped improve conditions at that port. USDA and NWSA are announcing the partnership today in an event featuring Stan Ryan, president and CEO of Darigold, an NMPF and USDEC member cooperative and a driving force behind the supply chain improvement.

“Dairy farmers and manufacturers celebrate today’s great news of an additional ‘pop-up’ site focused on helping to deliver relief for U.S. agricultural exporters grappling with severe supply chain challenges. This will provide meaningful assistance in getting their high-quality products to overseas customers. We appreciate Secretary Vilsack’s focus on continuing to find additional ways to tackle this concern,” said Krysta Harden, president and CEO of USDEC. “This is an important new tool as the Biden administration and Congress work together to find multiple pathways to address this complex issue, including passage of the Ocean Shipping Reform Act.”

“Today’s announcement of a new agriculture-focused ‘pop-up’ site in Seattle, coupled with likely Senate advancement of the Ocean Shipping Reform Act next week, show momentum building on tackling the export supply chain challenges in increasingly meaningful ways. That’s critical for dairy farmers and their exporting cooperatives,” said Jim Mulhern, president and CEO of NMPF. “We’re thankful to Secretary Vilsack for his leadership on this topic that’s so crucial to dairy. We urge the administration to build on today’s great news by expanding further to inland locations as well. We urge Congress to move forward swiftly with legislative solutions to the supply chain crunch by passing the Ocean Shipping Reform Act and advancing immigration reform to address the growing labor challenges facing our dairy farms and plants.”

USDEC and NMPF Praise White House Announcement on Ocean Shipping Enforcement

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) commend President Biden for outlining a new initiative to assign Department of Justice (DOJ) attorneys and litigators to the Federal Maritime Commission (FMC) to jointly improve enforcement of the Shipping Act. The initiative also directs the DOJ to pursue further actions to increase competition in the ocean shipping industry.

NMPF and USDEC strongly endorsed these efforts as a means of promoting increased competition and better services for American dairy exporters from the ocean freight transportation system. Disruptions in the export supply chain have cost U.S. dairy shippers over $1.5 billion in 2021 due to reduced value, higher direct costs, and lost export sales.

“We are grateful to President Biden and his administration for bringing the Department of Justice and the Federal Maritime Commission together in a partnership to better enforce the Shipping Act and promote competition in the ocean carrier market,” said Krysta Harden, president and CEO of USDEC. “Laws that protect shippers are only as good as their enforcement. We urge the DOJ and the FMC to move swiftly in pursuit of steps that will help deter unreasonable ocean shipping practices that harm U.S. dairy exporters.”

“Throughout 2020 and 2021, American dairy producers and cooperatives have faced unprecedented challenges in moving dairy exports from plants to ships due in key part to the actions of the ocean carrier industry,” said Jim Mulhern, president and CEO of NMPF. “The last year has clearly shown that changes are needed to tackle the unreasonable power shipping vessel owners have over America’s agricultural exporters working hard to get their goods to foreign markets. U.S. dairy exporters have been forced to endure unfair practices, including last minute changes, increased costs, and other unwarranted charges and penalties. Effective enforcement of the Shipping Act is long overdue particularly as ocean carriers enjoy record profits.”

The White House also called on Congress to address the present antitrust immunity for the predominantly foreign-owned ocean shipping alliances. On Monday evening the House moved quickly to advance reforms in this area by introducing the Ocean Shipping Antitrust Enforcement Act (H.R. 6864), which would repeal certain antitrust exemptions for ocean common carriers. Introduced by Rep. Jim Costa (D-CA), Adrian Smith (R-NE), John Garamendi, (D-CA), and Dusty Johnson (R-SD). NMPF and USDEC expressed support for the legislation and urged further action by Congress to advance it.

Progress on Ports Problems

Posted on by Theresa Sweeney

Bottlenecks at U.S. ports and their impact on agricultural exports took center stage at the National Press Club last week, with a webinar sponsored by the National Milk Producers Federation, the U.S. Dairy Export Council, and Agri-Pulse. This week’s podcast features Krysta Harden, president and CEO of USDEC, moderating a panel from the webinar featuring USDA Secretary Tom Vilsack; John Porcari, the Biden Administration’s Supply Chain Ports Envoy; Reps. John Garamendi (D-CA) and Dusty Johnson (R-SD), co-sponsor of a House of Representatives ports bill.

Vilsack at the panel announced a new initiative adding access for U.S. agricultural exports at the Port of Oakland. Vilsack also noted the importance of the public understanding that ports backlogs don’t only affect shipments of consumer goods.

“We hope to be able to make sure that people understand this isn’t just an import issue, it’s also an export issue,” Vilsack said at the event.  “And the Department of Agriculture wants to be part of the solution.”

The full podcast is here. You can find and subscribe to the podcast on Apple Podcasts, Spotify,  Google Podcasts and Amazon Music under the podcast name “Dairy Defined.” A transcript is also available below. Broadcast outlets may use the MP3 file below. Please attribute information to NMPF.

NMPF and USDEC Statement on Senate Introduction of Ocean Shipping Reform Act

Posted on by Theresa Sweeney

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) today commended lawmakers for introducing bipartisan Senate legislation to address the shipping challenges the dairy industry and other U.S. agricultural sectors are facing. The legislation, should it become law, would help alleviate delays and disruptions at U.S. ports that have been a critical part of the export supply chain challenges plaguing U.S. exporters.

Sponsored by Senators Amy Klobuchar (D-MN) and John Thune (R-SD), the Ocean Shipping Reform Act (S. 3580) is the Senate response to the House version (HR 4996) passed by a wide bipartisan vote (364 – 60) in December. Senators Baldwin (D-WI), Hoeven (R-ND), Stabenow (D-MI), Marshall (R-KS), Peters (D-MI), Moran (R-KS), Blumenthal (D-CT), Young (R-IN), Kelly (D-AZ), Blackburn (R-TN), Booker (D-NH), and Ernst (R-IA) also joined as original cosponsors of the bill.

“The supply chain challenges that have beset American exporters pose significant difficulties for U.S. dairy producers, causing over $1.3 billion in export losses for our sector during the first three quarters of 2021,” said Jim Mulhern, president and CEO of NMPF. “We greatly appreciate the leadership of Sens. Klobuchar and Thune to introduce legislation that will encourage many of the ocean carriers to stop unfair practices. We are committed to working with the Senators and their colleagues in Congress as legislation moves forward to ensure that a final law delivers the changes our exporters most urgently need to see.”

“This Senate bill takes strong strides to address many of the challenges dairy exporters have faced, including securing export vessel bookings and combatting unfair detention and demurrage charges, vital issues to ensure our products reach their intended destinations,” said Krysta Harden, president and CEO of USDEC. “When we can’t export our products, we not only jeopardize our foreign customer relationships and markets, but we also lose value-added opportunities that create jobs and investment in the United States. We look forward to continuing to work with Senators Klobuchar and Thune, and others in Congress, to address outstanding concerns and provide for the strongest possible reforms.”

USDEC and NMPF will continue to work with the Senate to strengthen the measure further as it advances through Congress.

USDEC and NMPF, in collaboration with their member Supply Chain Working Group, have leveraged a multi-pronged approach with Congress and the administration from early 2021 to address the supply chain disruptions plaguing the dairy industry, including unprecedented fees, container availability, and lack of transparency. Foreign-owned ocean carriers’ practices have been a sizable component of those problems. The organizations have provided input into the legislative text and worked closely with the sponsors of this bill to advance Congressional efforts to update the Shipping Act to encourage more reasonable and equitable access to the export shipping supply chain.

Beyond legislation, NMPF and USDEC also continue to work with Congress and the administration to identify additional measures to ease the congestion – including calling for further expanding port hours of operation, increased data transparency, and investments in key supply chain infrastructure.

Trade Advocates Turn Up Volume on Supply Chain Challenges

Posted on by Theresa Sweeney

Export supply chain challenges persisted as 2022 began, as did NMPF’s work, together with the U.S. Dairy Export Council (USDEC), to spotlight the disruptions faced by dairy exporters to build momentum for government action.

NMPF’s focus on the issue in January continued its two-track approach of pushing for both legislative reform and near-term steps by the administration to complement that.

NMPF co-hosted an Agri-Pulse press event with USDEC on Jan. 31 to assess and discuss solutions to agricultural export supply chain snarls. The hybrid event, held at the National Press Club, featured a panel of industry speakers impacted by the agricultural export supply chain concerns, including USDEC member Leprino Foods, and a government panel of USDA Secretary Vilsack; John Porcari, the Biden Administration’s Supply Chain Ports Envoy; and Ocean Shipping Reform Act lead sponsors Congressmen John Garamendi (D-CA) and Dusty Johnson (R-SD).

“We hope to be able to make sure that people understand this isn’t just an import issue, it’s also an export issue,” Vilsack said at the event.  “And the Department of Agriculture wants to be part of the solution.”

The event, which had more than 1,200 RVSPs from industry professionals, advocates and media outlets, provided the opportunity to refocus attention on how supply chain challenges are affecting exports. NMPF conducted outreach to multiple news outlets to foster robust coverage of those aspects nationwide, gaining attention from Bloomberg News and the Hagstrom Report to the Bakersfield Californian.

The webinar followed a Jan. 27 CEO roundtable discussion hosted by Sec. Vilsack that included two NMPF members – Dairy Farmers of America and California Dairies Inc. –to examine what other steps the Administration could take to mitigate the export supply chain snarls still plaguing dairy and other agricultural exporters.

The events took place as NMPF worked to build support in the Senate for companion legislation to the House of Representatives-passed Ocean Shipping Reform Act. The Senate bill planned for introduction early this month by Senators Amy Klobuchar (D-MN) and John Thune (R-SD) reflects many of the key provisions NMPF worked to secure in the House bill. To build on that positive starting point, NMPF is urging some targeted improvements as the legislation proceeds through the Congressional process.

NMPF also built support for a robust bipartisan message to President Biden urging him to take several near-term steps allowed under current law to provide further relief to agricultural exporters. The House letter, led by Reps. Jim Costa (D-CA) and Dusty Johnson (R-SD), garnered 71 signatures. NMPF worked closely with Congressional offices to help craft the letter’s messages.