Ag exports in the U.S. will be disrupted and hampered in the future because there is tough competition for the ships and a need for support at the ports. In the views of Walter Lanza, a community trader, the report for 2022 does not look satisfying as the global economy has been altered because of the supply chain, and the inevitable fact of inflation is not improving.
The profit coming from the import of goods with the help of the shipping industry has been barely enough in the past years, and as per sources, 2019 was marked with half-full ships and 13% empty ships. However, with the hit of the pandemic, the Ag exports situation took a positive turn.
Possible Solution Of This Serious Issue Regarding Ag Exports
The majority of the Americans did not stop spending on goods with the help of stimulus checks generated by the Government. This resulted in the rates jumping to $15,000 and a backlog of major ports. By the end of October, more than 80 vessels with an estimated amount of $25billion were in line to unload their cargo at the ports of Los Angeles.
The problems faced by major companies were solved when Home Depot, Costco, Coca-Cola, and even Target started their ships and vessels to avoid the problem of waiting. However, many companies preferred returning their empty cargo to Asia rather than waiting for Ag exports.
Moreover, as per Krysta Harden, the CEO and President of the Dairy Export Council of the U.S., the dairy exporters face problems as they cannot deliver in time even after having customers, which is very frustrating.
The construction of more vessels and ships costs more than $200 million and hence is not an ideal solution as it will increase the waiting list. The best management strategies are total automation of ports, providing incentives to workers, and working with motivated staff employees all day. Though Americans faced many issues, still they made a $177 billion export in ag products like beef, pork, corn, soybean, and many others in 2021.
