The National Milk Producers Federation (NMPF), the U.S. Dairy Export Council (USDEC) and the International Dairy Foods Association 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.”
Michael Dykes, D.V.M., President and CEO of the International Dairy Foods Association (IDFA) added, “The Ocean Shipping Reform Act will provide real, long-term solutions for the myriad issues congesting U.S. ports and slowing U.S. dairy exports. The bill places disciplines on ocean carriers’ ability to decline export cargo and when demurrage can be charged, helping to get U.S. dairy exports on the water in a timelier manner. It also strengthens the oversight authority of the Federal Maritime Commission over ocean carriers, the majority of which are foreign owned.”
“IDFA recently announced a Dairy Exports Working Group with the Port of Los Angeles and shipping company CMA CGM to identify and address supply chain issues hindering U.S. dairy product exports. We are hopeful that the Senate will act with urgency to move the Ocean Shipping Reform Act, sending a signal across food and agriculture that a new group of ‘supply chain problem solvers’ has arrived to remove obstacles and invest in long-term solutions that help American agriculture to thrive.
“Unlike 20 years ago when we exported very little, the U.S. dairy industry today is the third-largest dairy exporting nation in the world. Today, we need America’s transportation and export systems to function with a level of precision and efficiency that sets a global standard so U.S. dairy can achieve our goal of becoming the world’s leading dairy supplier within a decade.”
These dairy organizations will continue to work with the Senate to strengthen the measure further as it advances through Congress. Beyond legislation, they will 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.
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