Waving Goodbye to Shipping Issues

Jun 17, 2022

Sailing the ocean blue in 2022.

This week, the U.S. Senate passed the Ocean Shipping Reform Act to help curb inflation and ease export backlogs.

Nauti(cal) practices: We’ve had two years of supply chain issues under our belts, causing billions of dollars of goods to be left at docks and foreign shippers to make big bucks. The tide needed to shift.

The Ocean Shipping Reform Act gives the Federal Maritime Commission (FMC) greater authority to regulate shipping carrier practices to prevent what was happening in 2021. High freight rates, declined booking requests, and unreasonable freight charges caused an average 22% of U.S. ag sales to wash away in 2021.

All aboard: Groups like the National Association of State Departments, American Farm Bureau Federation, North American Meat Institute, and the U.S. Meat Export Federation are happy to see this bill move forward, saying it’s “never been more important to maximize the value of our agricultural products.”

Sail away: According to the American Farm Bureau Federation, an estimated 25B in ag exports were lost in the past six months because of the issues in shipping. They say the bill, once law, will allow farmers and ranchers to better meet consumer demands.

The bill now goes on to President Biden for his Herbie John Hancock.