New “pop up” port planned for California in bid to reduce US shipping disruption
02 Feb 2022 --- A USDA-driven Californian port project looks set to ease congestion and restore disrupted shipping services to US-grown agricultural commodities that have been prevented from reaching their markets recently.
The government department is partnering with the Port of Oakland to set up a new 25-acre “pop-up” site to make it easier for agricultural companies to fill empty shipping containers with commodities.
Export delays have been hurting food manufacturers because recently fewer containers have been made available for US agricultural commodities, including dairy, nuts and fresh produce, the USDA says.
This is because some ocean carriers have “circumvented traditional marketing channels and rushed containers back to be exported empty, and as a result, many of these carriers have suspended service to the Port of Oakland,” notes a USDA statement.
The project is slated to open next month, and it could serve as a blueprint to be replicated elsewhere in the US.
Export delays have been hurting food manufacturers because fewer containers have been made available for US agricultural commodities.
Reducing US shipping disruption
There has been strong demand for US goods in Asia during the COVID-19 pandemic, which has led to congestion at ports on the West coast. As a result, some ships have been delivered to the US, then left empty rather than waiting to repack vessels with exports.
US agriculture secretary Tom Vilsack says the government has stepped in to mitigate complex port capacity and congestion issues and keep US agricultural commodities on the move.
“COVID-19 revealed vulnerabilities across our supply system, both at our ports and in the agricultural sector. As the economy has made a historic recovery, it has put additional strain on the supply chain. The Administration is using creative approaches to improve port operations while elevating American-grown food and fiber,” he says.
“This creative partnership with USDA and the Port of Oakland will help American farmers and agricultural producers move their product to market while also making better use of empty containers that are causing congestion at the ports,” adds US transportation secretary Pete Buttigieg. “After we helped set up inland pop-up ports at the Port of Savannah, we witnessed significant improvements in the flow of goods, and we expect to see similarly positive results once this Oakland facility is open. We look forward to engaging with other ports on similar solutions to congestion.”
Alleviating bottlenecks
The site will provide space to prepare empty containers beginning in early March.
Agricultural companies and cooperatives will have easier access to these containers, which they will fill with commodities, restoring shipping services to agricultural products while relieving congestion.
The new site will also have a dedicated gate with the ability to pre-cool refrigerated shipping containers to receive perishable commodities, all while avoiding bottlenecks that would have resulted from entering the main area of the Port.
Using Commodity Credit Corporation funds set aside to address market disruptions in September 2021, USDA will cover 60% of the start-up costs. It will also help cover additional movement logistics costs at US$125 per container.
By Gaynor Selby
