USMEF Economist Details Logistics Challenges at USDA Ag Outlook Forum

Logistics challenges continue to limit the ceiling of U.S. red meat exports, despite those exports reaching record levels in 2021.

U.S. Meat Export Federation Economist Erin Borror recently outlined some of those challenges at USDA’s Agricultural Outlook Forum, noting that Asian shippers are incentivized to get empty containers back quickly, rather than filling those containers with U.S. product.

"Asian exporters are paying premium shipping rates, sometimes 10 times what the rate is for going from

the States back to Asia, and this shipping rate disparity incentivizes sending back those empty containers so turning them as quick as you can," said Borror. "This results in shipment delays, so as exports get bumped for empty containers on ships, cargo is delayed weeks or even months waiting for shipment space. I know I was talking to one exporter and they had products sitting on rail cars outside of the West Coast ports, waiting to go to China, luckily frozen product, but waiting for 21 days, 30 days, for

ship space."

U.S. beef exports greatly exceeded previous volume and value records in 2021, surpassing $10 billion for the first time, according to year-end data released by USDA and compiled by the U.S. Meat Export Federation (USMEF). Pork exports finished slightly below the record volume reached in 2020 but set a new value record, topping $8 billion for the first time.

Source: USMEF