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2016 Transportation Outlook

1/8/2016

There are many challenges facing U.S. agriculture in the year ahead when it comes to transportation issues. The high value of the U.S. dollar compared to other currencies results in U.S. exports costing more than exports supplied by other countries. In addition, the slowing economies in Asia will require creative strategies to keep those markets strong.

The Agriculture Transportation Coalition (AgTC) recently cited priority issues for 2016. They include:

West Coast ports recovery – Terminal wait times both outside and inside the terminal gates must be improved as ever-larger ships call on overwhelmed terminals. Also, is the recent trend of cargo shifting from West Coast ports to East and Gulf Coast gateways a temporary or permanent change?

Increasing cost of trucking operations – Federal and state regulatory mandates on emission standards and challenges with the owner-operator model and treatment of drivers all lead to increased costs.

The Safety of Life at Sea (SOLAS) container weight certification program – Beginning in July 2016, the shipper must certify the weight of the cargo and the container — information the exporter often doesn’t have. Without this information, the carrier cannot load the cargo. Transmittal of accurate documentation in a timely manner is a significant challenge for carriers, including their ability to certify the weight of the cargo.

The Almond Board will continue to work with AgTC on these issues and others that could have serious implications for exporting almonds.