The following editorial originally appeared in The Seattle Times:
The conversation around supply chain woes has been dominated by imports — understandably so, as most Americans can see the impact in rising prices and empty shelves. But agricultural exports, a key driver of Washington’s economy, have also suffered.
What used to be a predictable process to fulfill orders now comes with uncertainty, Riley Bushue with the Northwest Horticultural Council said.
“Are you going to be able to get a container? Can you get the booking? When you get the booking, is it going to stay on schedule or is it going to shift?,” he said.
Fortunately, Congress is paying attention and is poised to pass legislation that will help ease the burden on America’s farmers. It is the kind of critical, bipartisan action that deserves to be celebrated.
While cost increases are felt by everyone, exporters are also affected by a shortage of shipping containers exacerbated by demand. This means carriers can make more money by speeding an empty container back to Asia, to be filled with high-value products, than waiting for a United States exporter to ship their goods. The mostly foreign-owned shipping container industry posted record profits of $150 billion last year.
The Ocean Shipping Reform Act of 2022 requires ocean carriers to certify that late fees comply with federal regulations. It prohibits carriers from unreasonably declining shipping opportunities for United States exports and shifts the burden of proof regarding late fees from exporters to the ocean carrier that issues the charge.
“American exporters and their products are being left on the docks, and that’s why we wanted to act quickly,” U.S. Sen. Maria Cantwell, D-Wash., said. “The American farmer, with growing season upon us, can’t afford to wait another minute for the Federal Maritime Commission to do its job and help police this market.”
Cantwell is a co-sponsor of the bill. The legislation was spearheaded by Minnesota Democratic Sen. Amy Klobuchar and South Dakota Republican Sen. John Thune. The House version also had bipartisan origins, and counts Washington U.S. Reps. Dan Newhouse, R-Sunnyside, and Kim Schrier, D-Issaquah, among its co-sponsors.
The World Shipping Council argues: “Instead of passing legislation that would do nothing to address the nation’s supply chain congestion, Congress should seek real solutions that take a comprehensive, forward-looking view. That means continued investment in port infrastructure and promoting communication, innovation, and collaboration.”
Shippers are right that this bill will not alleviate most of the supply chain’s problems, and Congress must continue to focus on needed upgrades.
But by improving regulation to give exporters a fairer shot at getting their products to market, the Ocean Shipping Reform Act is a clear win for American agriculture.
Lawmakers should act swiftly and move for a final vote.
