Supply Chain Challenges

Supply Chain Challenges

Bob Larson
Bob Larson
I’m Bob Larson. Supply chain bottlenecks starting at West Coast ports are squeezing U.S. Ag exports, costing some ag sectors a bundle.

Exports are the lifeblood of American agriculture, yet, according to Leprino Foods Mike Durkin, supply chain bottlenecks from ports to waterways and rail and truck terminals are squeezing that lifeline …

DURKIN … “Freight rates from Asia are currently 15 times higher than freight rates from the U.S. to Asia, creating a clear financial incentive for ships to depart empty, with no U.S. goods on board, versus waiting to be loaded. As a result, shipping companies are refusing to load U.S. agricultural exports and over 70 percent of the containers are returning to Asia, empty.”

Durkin says it’s killing income for many companies …

DURKIN … “For Leprino, over 99% of our 2021 ocean shipments have been canceled or rebooked to a later date at least once. And in some cases, up to ten times or more. Over 100 bookings this year have been canceled or rebooked over 17 times.”

With freight and storage fees soaring, Durkin says, future business is in danger …

DURKIN … “This export crisis may result in irreparable harm to the American agriculture, as customers around the world are questioning the US dairy industry’s reliability as a supplier.”

Durkin says real results will take months so, until then, Congress must act to bar U.S. ocean carriers from returning to Asia, empty.

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