Senators take ship capacity issue to FMC

Senators take ship capacity issue to FMC    U.S. Senate Agriculture, Nutrition and Forestry Committee Chairman Blanche Lincoln, D-Ark., and ranking member Saxby Chambliss, R-Ga., in a letter to Federal Maritime Commission Chairman Richard A. Lidinsky Jr., expressed concern that U.S. agricultural exporters are experiencing serious service issues with the foreign-flagged ocean carrier industry.
   The Agriculture Transportation Coalition said the letter followed a briefing by Tyson Foods.

Lincoln

   “Service problems threaten agriculture’s ability to expand overseas sales and boost incomes,” the senators wrote in the letter dated June 15. “The ability of our agricultural exporters to expand markets abroad is dependent on adequate oceangoing vessel capacity and container availability at inland locations. If this critical link in the export chain does not function fairly or efficiently, our shippers will be unable to get agricultural products to key overseas markets. This will not only cost U.S. farmers and ranchers new export opportunities, but could cost them existing overseas customers.”

Chambliss

   The senators said they applauded an FMC investigation into whether exporters and importers are obtaining sufficient capacity on ships. Preliminary findings in that investigation are to be discussed in a closed session at the FMC June 23.
   “It is our hope that the global economic recovery and improvements in fleet capacity will mitigate future problems,” the senators wrote.
   “We would also appreciate your perspective concerning the specific authorities that the commission has available to ensure the ocean carriers’ honor their service contracts with U.S. shippers, including the ability to penalize carriers for egregious practices. If you lack such tools, we would welcome a discussion of ways to potentially strengthen the Commission’s authority with the carriers,” the letter said.