MCGA advocates for shipping reform bill
The Minnesota Corn Growers Association (MCGA) has joined an effort by U.S. Sen. Amy Klobuchar (D-Minn.) to ensure that American exports, including many agricultural products, can be delivered to international markets.
At a business roundtable hosted by Klobuchar on Monday, MCGA Past President and Chairman of the Board Tim Waibel voiced support for the Ocean Shipping Reform Act. The bipartisan bill, which Klobuchar introduced Feb. 3, could lead to fewer ships leaving U.S. shores with empty shipping containers. The trend has increased since early 2020 and resulted in reduced exports, including for agricultural producers who rely on shipping containers to move their goods.
The container shortage has not directly impacted corn exporters, since corn is typically transported in the holds of bulk carrier ships, rather than in shipping containers. But it has impacted exports of corn co-products, such as dried distillers grains, and products that use corn as a feedstock, such as meat, poultry and dairy.
Additionally, congestion at U.S. ports has resulted in delayed shipments of key farm equipment and supplies, raising production costs.
“Exports have always played a big part in agriculture. Currently 17.5% of the corn produced in the U.S. is exported,” Waibel said. “I do know on my farm that we talk about supply chain issues. We ordered a tractor a year ago this month. It was supposed to be here in March, and we got notified that it’s supposed to be here in June – and that’s if everything goes right. I know that I’m not the only farmer dealing with this.”
The Ocean Shipping Reform Act would make it harder for carriers to arbitrarily turn away goods that are ready to be shipped abroad. Additionally, it would require carriers to certify that late fees comply with federal regulations and, if the late fees are challenged, prove their necessity. Under existing law, the burden of proof falls on the invoiced parties.
Joining Klobuchar in introducing the bill was Sen. John Thune (R-S.D.). In addition, the bill has 13 bipartisan cosponsors, including Sen. Tina Smith (D-Minn.). Similar legislation overwhelmingly passed the House of Representatives in December.
“Foreign-owned ocean carriers have been making it more difficult and more expensive to ship products to where they need to go,” Klobuchar said. “That’s why Senator John Thune and I introduced a bipartisan solution in the Senate: the Ocean Shipping Reform Act. Our bill protects American manufacturing and farming by making it harder for foreign-owned ocean carriers to refuse to ship ready-to-export goods waiting at our ports.”
MCGA thanks Senator Klobuchar for introducing the Ocean Shipping Reform Act and is proud to support the legislation as part of efforts to develop international markets for corn. Read the latest about MCGA’s legislative advocacy at mncorn.org.
