The Port of Oakland came under fire from growers and ranchers in 2021, when American agricultural exports suffered supply chain bottlenecks and empty containers were returned to Asia. Officials at the preferred California port by many in the farming sector have been working diligently to support exporters, and a new partnership with the U.S. Department of Agriculture (USDA) will literally pay ranchers and growers to export from Oakland.
“Our partnership with the USDA to open a temporary pop-up yard will go a long way in helping ag exporters,” Port of Oakland Maritime director Bryan Brandes reportedly said. “At the same time, we still need the shipping lines to bring back vessel service to Oakland to address the high demand of export volume.”
Although the uncertainty of building a Major League Baseball stadium at the port creates concerns about the port’s capabilities going forward, the current incentive pays agricultural product shippers upwards of $200 per container and $400 for refrigerated units storing perishable goods. Shippers can also earn an additional $125 per day by retrieving empties at a designated storage facility. The perk is designed to help offset a portion of the fast-rising export costs, inflation, and staggering diesel prices that are typically passed along by truck transportation organizations.
Reports indicate that Port of Oakland exports have significantly declined after the supply chain disruption and agricultural products not getting appropriate prioritization. The export incentive program appears to be a way to attract customers who have moved to seemingly more reliable ports.
“Both the Port of Oakland and the Northwest Seaport Alliance in Seattle have been identified as key gateways for American-grown agricultural commodities, and each has experienced significant challenges with the flow of containerized agricultural commodities and products,” Agriculture Secretary Tom Vilsack reportedly stated. “While USDA’s per-container reimbursements will not cover the full cost of moving and storing shipping containers, the assistance provided will help ensure American-grown agricultural products can once again efficiently move through supply chains to reach global markets.”
During the height of the supply chain logjams, Port of Oakland leaders took proactive measures to support agricultural exporters. The port opened a 25-acre off-site location to position containers for rapid pickup from truckers. State and federal agricultural outfits participated in the logistical strategy in January and have made strides to reduce wait times.
Exports eligible for the direct-payment incentives include products grown or produced for food, feed, or fiber, in the U.S., with the exception of tobacco. A select list of forestry products may also qualify. The USDA assured ranchers, growers, and shippers the program will run through 2022, and exporters are urged to submit reimbursement claims before 2023 begins. For more information or to fill out a Commodity Container Assistance Program application, visit the USDA’s Farm Service Agency.
Sources: ajot.com, portofoakland.com, fsa.usda.gov
Leave a Comment