Backup at Chinese Ports, Lack of Container Refrigeration Creating Problems for US Ag Exporters, AgTC Says
The Agriculture Transportation Coalition is urging U.S. exporters, before loading their containers, to confirm with ocean carriers that the cargo will reach their Chinese customers and will have proper refrigeration in case of delays at Chinese ports due to the coronavirus outbreak. The AgTC also said it is continuing to urge ocean carriers to refrain from imposing detention penalties on containers that are stuck at ports due to the virus containment measures in place (see 2002030034). “Within China, the supply chain has been compromised, starting at the China maritime terminals extending all the way to the ultimate inland destination points,” the AgTC said in a Feb. 11 emailed press release.
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Offloaded cargo at Chinese ports has “quickly backed up,” which has presented problems specifically for refrigerated goods, AgTC said. At the ports, plugs that supply electricity for refrigeration units on containers are “fully utilized,” the press release said. “Before removing protein from refrigerated warehouses, the US exporter should get a commitment [from] their ocean carrier that there will be available reefer plugs at the destination port,” the coalition said.
The AgTC also said there is “an emerging threat of a shortage” of ocean carrier capacity to take U.S. exports of agricultural goods to China. U.S. agricultural exports would usually be transported on the “backhaul” of a roundtrip U.S.-China ocean voyage, but because Chinese production and exports of consumer goods have slowed due to the virus, there are “dramatically less” containers sailing to the U.S. that are able to return with U.S. agricultural goods, the press release said.
But the coalition said it is largely focused on urging ocean carriers to not impose demurrage and detention penalties for containers that cannot be moved because of the coronavirus response. AgTC members’ containers are getting stuck at “inland origin points, at rail ramps, at truck yards, at refrigerated warehouses and at the marine terminals here at the US ports,” the press release said. The coalition said penalties from ocean carriers can “quickly” add up to tens of thousands of dollars. “This remains perhaps the highest immediate priority for the Agriculture Transportation Coalition,” it said.
For a copy of the AgTC news release, email ITTNews@warren-news.com.