WASHINGTON — The International Dairy Foods Association or IDFA, the Port of Los Angeles and CMA CGM — a world leader in shipping and logistics — Jan. 24, announced the formation of a dairy exports working group aimed at identifying supply chain issues hampering U.S. dairy product exports. The group will focus on seaports on the West Coast of the United States, where a majority of dairy products begin their export journey, as well as opportunities to streamline the movement of products from the interior of the United States to the West Coast.
The announcement was made at the annual Dairy Forum 2022 conference in Palm Desert, Calif., by Gene Seroka, executive director of the Port of Los Angeles, and Michael Dykes, D.V.M., President and CEO of IDFA.
The dairy exports working group will examine several ocean shipping and rail challenges and solutions, including:
- Exploring ways to aggregate and streamline U.S. dairy exports from multiple suppliers to ensure more consolidated and attractive bookings;
- Working to increase rail availability in the interior of the United States to reach non-coastal exporters;
- Determining viability of implementing a “fast lane” concept for vessels agreeing to depart full or with fewer empty cargo containers;
- Defining agreed terms for exporters using empty containers currently languishing at U.S. ports; and
- Establishing guarantees to fix and surpass ghost bookings.
The current situation is costing U.S. dairy companies millions of dollars and damaging the credibility and reputation of U.S. dairy exporters among global customers. Dairy exporters are having to airfreight product, sometimes at 20 times the cost, to meet overseas contracts. At the same time, U.S. warehouses are full or facing near capacity levels due to delays.
IDFA has been advocating heavily with the U.S. Department of Agriculture, the White House, the U.S. Department of Transportation, and other agencies to raise awareness and ensure protection of America’s dairy industry.
Details: info@idfa.org