US Senators Dianne Feinstein and Alex Padilla on May 4 urged ocean carriers to load more US agricultural exports as the frenzied US import market has impacted export volumes.
“Agricultural commodities have been significantly hampered in exporting their products because of container and equipment shortages, canceled bookings, and inadequate receiving windows,” a letter from the senators said May 4. “Three out of four containers at US ports are returning to Asia empty, resulting in a significant backlog of sold product in need of transportation.”
The Federal Maritime Commission, which oversees US commercial trade activity, said April 22 it was launching an audit into carrier practices as they relate to servicing US exporters. This came amid a flurry of shipper-led complaints regarding inability to secure equipment and vessel allocations.
“Ocean carriers are now being asked to share information about the export services they offer American shippers,” the FMC said in a statement April 22. “Responses will provide better insight into not only market trends and performance, but where opportunities exist for individual lines to improve or increase access to service offerings.”
Round trip economics still work against US exporters
The plight of US exporters is highlighted well amid freight rate volatility, which also demonstrates why ocean liners are looking move empty containers in favor of loaded ones to reduce turnaround times.
Currently, US import rates from Asian loading ports far outweigh those for US exports. S&P Global Commodity Insights’ Platts Container Rate 13 from North Asia to West Coast North America was assessed on an FAK basis at $8,200/FEU May 4, showing more than an eight-fold increase over US Pacific Cost export rates, which were assessed at the $1,000/FEU level May 4.
“We actually withdrew a [May 1] GRI, and you’re not seeing other carriers wanting to impose rate increases on the export side because they don’t want to look discriminate against US exports,” a US-based carrier source said. “No one wants to be the one who isn’t supporting the US export market and the long arm of the law.”
At the Port of Los Angeles, the largest container port in the US, loaded exports for March came in at 111,781 TEU, a 9% decrease against the same month in 2021, while empty exports climbed to 349,116 TEU, an increase of 2% on the year.
Exports have now declined in 37 of the last 41 months at the port, where 3.1 containers are loaded empty for every full export.
Source: Platts
