For several years the Chinese have been holding back the transportation of American goods for export. Yet, the media has been silent on this. Just as it has been silent on Chinese genocide and slave keeping. Do you think its private financial arrangements with the Biden family had anything to do with this cone of silence?
““Shipping carriers rejected U.S. agricultural export containers worth hundreds of millions of dollars during October and November, instead sending empty containers to China to be filled with more profitable Chinese exports,” a 2021 CNBC investigation found.
American farmers, ranchers and growers don’t have a shipping container shortage, as has been reported. Foreign shipping carriers are refusing to take American and California-made products, and instead, the shipping carriers take empty containers back to China.”
No wonder Putin thought we are weak. Now you know why the Chinese did not care what Biden said before making Hong Kong a slave State.
International trade impeded by Mega Carriers by Richard Eber
Richard Eber, Exclusive to the California Political News and Views, 2/28/22
“Shipping carriers rejected U.S. agricultural export containers worth hundreds of millions of dollars during October and November, instead sending empty containers to China to be filled with more profitable Chinese exports,” a 2021 CNBC investigation found.
American farmers, ranchers and growers don’t have a shipping container shortage, as has been reported. Foreign shipping carriers are refusing to take American and California-made products, and instead, the shipping carriers take empty containers back to China.
The CNBC investigation found that in October and November 2020, shipping carriers rejected 178,000 agricultural export containers worth $632 million.
Major news agencies, cable TV outlets, and other media channels missed this story written by Katy Grimes of The Globe. It tells the tale of major shipping lines sending empty containers back to China to speed up the delivery of more lucrative cargo to the United States.
As an international freight forwarder, licensed by the Federal Maritime Commission (FMC), who has shipped containers across the Pacific since the 1970’s, this news is hardly a surprise. Getting space for export shipments has been next to impossible for the last six months or so.
In addition to agricultural goods, other commodities have been left behind as well. All of this has had negative effects on the economy of California and the rest of the country. As might be expected both Republicans and Democrats in Washington D.C. have ignored this alarming turn of events.
They are much more interested in Voters Rights, Build Back Better, Covid-19, Inflation, and rising crime rates etc., to deal with such a mundane matter as export cargoes being left on the dock.
As might be expected, the distribution crisis in Long Beach, Los Angeles, Oakland, and elsewhere are the result of what can be charitably termed “benign neglect” over a long period of time. Summarizing what has occurred:
- Led by industry leaders Maersk, Mediterranean Shipping (MSC), China Ocean Shipping (Cosco) CMA-CGM (French), Hapag-Lloyd, (German), Ocean Network Express (Japanese), and Evergreen (Taiwan), these 7 carriers control over 75% of the container traffic in the world.
- This oligopoly is enhanced by space sharing agreements between these companies which give them additional power to determine where their vessels call and what cargo they accept.
- The United States has little say in determining international freight matters as US Flag carriers are virtually absent volume wise except in the Hawaiian and Alaska trades where the Jones Act insists expensive American crews are employed.
- Going back a half century the Federal Maritime Commission tightly regulated rates and practices of the shipping industry. Over time deregulation has led to them losing power to insure fairness for the monitoring of export and import cargoes.
As a result of what has transpired, we have reached the point where large international business entities are calling the shots in regulating the high seas. Their quest for higher profits have superseded the interests of the United States government and those who live in the USA.
Exporters in California and elsewhere have been left holding the bag so to speak.
The congestion at the docks is partially the result of Container Companies sailing empty to the Far East. In one respect they can hardly be blamed because revenue on imports these days ranges to an average of $ 8,000 per 20 foot unit to $15,000 for a 40 (depending on port) The East Coast and Gulf are more expensive from the longer voyage traveling thru the Panama Canal.
Revenues for export cargoes such as Agricultural Goods are less than a fourth of what is generated by imports.
With this point of information dilemma facing the United States, we can ask what can be done to make sure American Exports are loaded as been the case in the past. I would suggest:
- Revive the FMC and have them assume for authority than they have exhibited in the last quarter century. If ocean carriers continue to return with empty containers Westbound, they should be penalized one half of revenues generated by import shipments.
- At the same time the FMC should investigate the monopolistic trade practices of the large ocean carriers in terms of their adherence to U.S. Anti-trust laws.
- The Federal Government should take over trucking regulations in California within 100 miles of ports. It is well known that Gavin Newsom and the Progressives running the legislature have impeded Owner-Operator, and other Trucking companies with environmental and unfair labor regulations which restrict the efficient flow of cargo to and from the docks. It must be realized California is not an independent country that can impede interstate commerce.
To the average political hack in Washington D.C. and Sacramento, my suggestions might appear to be Draconian in nature. Looking at everything from a political perspective, in almost every case they are concerned with the consequences of offending organized labor and powerful international businesses interests.
However, with the grim conditions in the Ukraine, inflation in the USA caused at least partially by the Green New Deal restricting petroleum output, and the deteriorating conditions on the Southern border, a change of policies is urgently needed.
Both Democrats and Republicans need to stop being such partisan ideologues. For once they need to do what’s right for the Red, White & Blue.
The problems outlined with congestion at the ports might be a tip of the iceberg; but are an important component in making America great again.
