America's new export problem: 12.1 million shipping containers left biggest U.S. ports empty

For 20 years, Greg Jackson has exported hay and grass grown in California’s Imperial Valley to places like China, where an increasing number of dairy farms rely on American alfalfa and other forage crops that are in short supply locally. As the executive vice president for sales at Border Valley Trading in Brawley, Calif., Jackson has arranged for shipping containers to ferry hay from the ports of Los Angeles and Long Beach across the Pacific Ocean.

Bottlenecks at U.S. ports have thrown a spotlight on the struggle to get imported goods to American consumers, but there’s a flip side: exports of U.S. goods, including agricultural products, are having trouble making it to overseas customers. Voracious demand for imported goods by U.S. consumers has pushed up rates for freight being shipped across the Pacific from Asia to the U.S., making that trip far more lucrative than the journey from the U.S. to Asia. That’s incentivized shippers to leave with empty containers, rushing them back to Asian ports where they can be filled again with U.S.

The coalition and a number of farm groups have thrown support behind legislation introduced by Reps. John Garamendi, D-Calif., and Dusty Johnson, R-S.D., that includes a provision forbidding common carriers to “unreasonably decline export cargo bookings if such cargo can be loaded safely and timely and carried on a vessel scheduled for such cargo’s immediate destination.”

For meat exporters, 2021 is still shaping up to be a strong year. Beef exports, in fact, are set to shatter the previous record, Arp said, but, overall, port issues are “taking what is a really good year and is probably going to prevent it from being a great year.”

Didn't I just hear that our trade deficit is way down?

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