House Approval of Ocean Shipping Reform Act: Key Step for U.S. Ag Exports

Although red meat exports are on a record pace in 2021, shipping delays and obstacles remain a major concern for exporters and their international customers. U.S. Meat Export Federation (USMEF) President and CEO Dan Halstrom said that shipping delays and other transportation obstacles remain a major concern for U.S. exporters and their international customers. 

Last week the U.S. House of Representatives approved the Ocean Shipping Reform Act of 2021 (H.R.4996). The legislation received strong bipartisan support, clearing the House on a vote of 364-60. 

“These headwinds in the global supply chain continue to be a risk to our great demand on the export side. However, we are starting to see some signs of perhaps the tide improving here. The House representatives approved the Ocean Shipping Reform Act. This is a huge step in the right direction in terms of enforceability of some of these booking contracts for our exporters,” Halstrom said in the USMEF Audio Report.

During the USMEF Audio Report, Halstrom thanked House members for their support of H.R. 4996 and agricultural trade associations such as the Agriculture Transportation Coalition (AgTC), National Pork Producers Council (NPPC) and North American Meat Institute (NAMI) for rallying support for the bill. He added that expanded hours of service at several ports and heightened efforts to clear incoming cargo in a more timely manner are also important steps needed to ensure prompt and reliable delivery of U.S. agricultural products destined for overseas markets. 

“I think this will focus the shippers to further prioritize export shipments. The reality is that a sale is not complete until it's delivered, and hopefully delivered on time. In the end, this is the key. We have to service our customers. We have one of the best reputations in the world on shipping our product overseas,” Halstrom said. 

Much of this cargo is chilled, not frozen, he explained. Because of this, there are shelf-life concerns and more importantly, demands that this product arrive on time in a specific week for consumption.

“This effort by the House will be met very well by our international customer base,” Halstrom added.

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