Wednesday, April 24, 2024
HomeDairyUSDEC's plan to enhance the movement of U.S. cheese and dairy components...

USDEC’s plan to enhance the movement of U.S. cheese and dairy components via world provide chains

The worldwide provide chain disaster has abated, however issues stay, requiring steady enchancment and ongoing vigilance.  

Supply chainProvide chain transparency is likely one of the many objectives USDEC and the Nationwide Milk Producers Federation are engaged on. Picture credit score: Canva

On the peak of a world provide chain disaster that slowed the movement of cheese and different U.S. dairy exports to a crawl two years in the past, U.S. Dairy Export Council (USDEC) President and CEO Krysta Harden instructed a Washington, D.C., gathering of trade leaders and policymakers that “We’re dwelling with this new regular that’s totally irregular.”

President and CEO Mike Durkin of Leprino Meals, the world’s largest producer of Mozzarella cheese, warned at a U.S. Home Agriculture Committee listening to that the U.S. dairy trade might see “irreparable hurt” if it misplaced its fame as a dependable world provider on account of provide chain points.

Should you export, your provide chain is essential to your success as a result of it’s the way you get your merchandise from right here to there.

Throughout the disaster, exporters struggled to safe transport container house on ocean vessels whereas paying exorbitant detention and demurrage charges at West Coast ports, the place the logjams had been the worst, stopping U.S. suppliers from transport to Asia.

Thankfully, one thing approaching provide chain normalcy has returned.

However that is no time for complacency. With out fixed vigilance, one other provide chain disaster might paralyze U.S. cheese exports sooner or later.

I work to assist forestall that from taking place because the commerce coverage director at USDEC and the Nationwide Milk Producers Federation (NMPF). Working with USDEC member corporations and others, we push to enhance provide chains for your entire U.S. dairy trade repeatedly.

Our focus is on three objectives to assist U.S. cheese and different dairy exports movement throughout our borders:

1. Deliver extra predictability to exporters by correctly implementing the Ocean Transport Reform Act.

In June 2022, President Biden signed the Ocean Transport Reform Act (OSRA) into regulation — key laws to handle a provide chain disaster plaguing dairy exporters with unprecedented delays and report charges over two risky years. USDEC and NMPF offered a hand in shaping the laws and championing the invoice into regulation.

Whereas OSRA delivered just a few rapid victories for dairy exporters, together with directing the Federal Maritime Fee (FMC) to determine limits on detention and demurrage charges that had been incurred exterior of a shippers’ management, the invoice additionally arrange an implementation course of to handle extra entrenched points.

USDEC and NMPF have guided 4 detailed units of feedback over the previous year-and-a-half to the FMC because it crafts new guidelines associated to detention and demurrage charges, what constitutes an ocean service’s unreasonable refusal to deal or negotiate and the institution of a provide chain emergency. Most notably, the FMC issued a July 28 supplemental rulemaking on how the company can greatest maintain ocean carriers answerable for unreasonably refusing to hold exports after citing USDEC and NMPF’s feedback over 20 instances within the revised rule. FMC’s definition of “unreasonable” has far-reaching implications, and the organizations had been insistent that the fee’s final willpower prohibits ocean carriers from discriminating towards perishable dairy exports that can not be left ready on a dock for days or perhaps weeks.

Because the OSRA rulemaking course of continues, USDEC and NMPF stay closely engaged with the FMC and Congress to make sure that the brand new guidelines convey some certainty to what has been an unpredictable provide chain.

2. Enhance provide chain transparency for exporters via the brand new FLOW program.

USDEC has been a vocal advocate for elevated export provide chain transparency, significantly as continuously opaque info associated to transport schedules and tools location continues to place U.S. dairy exporters at an obstacle. USDEC coordinated a Sept. 8 U.S. Division of Transportation (DOT) briefing on its new Freight Logistics Optimization Works (FLOW) program with a number of corporations engaged within the group’s provide chain working group.

FLOW, which was launched in March 2022, permits provide chain stakeholders inside america — ocean carriers, ports, motor carriers, railroads, warehouses and others — to alternate knowledge, which leads to macroeconomic indicators of products transferring all through the availability chain. The administration’s new FLOW initiative incorporates components of the now-defunct USDA Ocean Transport Container Availability report, which USDEC has lengthy known as for resuming. Dairy exporters within the FLOW initiative can discover extra info at

USDEC and NMPF additionally submitted feedback on Oct. 13 to the FMC that define the reliability of assorted knowledge and data on the entities that present transport info. The organizations proceed to discover choices to extend visibility into container and tools areas to eradicate pointless delays and added prices.

3. Work with Congress and the administration to mitigate dangers to dairy provide chains.

Following 13 months of negotiations and work disruptions that severely threatened the export provide chain, West Coast dockworkers and port terminals introduced a tentative settlement on June 14. USDEC and NMPF had led engagement with the administration and Congress all through the labor talks, requesting that the federal authorities do the whole lot in its energy to make sure that the negotiations don’t dissolve right into a full work stoppage, which might have devastating results for dairy exporters.

USDEC engages with different provide chain points as they come up, together with ongoing trucking disruptions on the southern border and points associated to container break-ins.

Getting cheese and different exports transferring swiftly via world provide chains will not be a one-and-done deal. Ongoing success requires vigilance, monitoring what is occurring to shipments and constructing relationships with individuals who can assist when wanted.

From our headquarters in Arlington, Virginia, we will see the Washington Monument. This proximity to the federal authorities provides us face-to-face time with policymakers on behalf of USDEC members who solely fund our advocacy via the dues they pay.

At USDEC, we passionately imagine that the U.S. is positioned like no different nation to produce sustainable cheese and dairy components to the world persistently. To make that imaginative and prescient a actuality, we should proceed to work tirelessly with our members and dairy companions for a free-flowing world provide chain.

Tony Rice is commerce coverage director on the U.S. Dairy Export Council and the Nationwide Milk Producers Federation. This text appeared first in Cheese Market Information, Copyright 2023 Quarne Publishing LLC.

The U.S. Dairy Export Council fosters collaborative trade partnerships with processors, buying and selling corporations and others to boost world demand for U.S. dairy merchandise and components. USDEC is primarily supported by Dairy Administration Inc. via the dairy farmer checkoff.



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments