USDA has announced plans to increase capacity at the Port of Oakland in Oakland, Calif., and improve service for shippers of U.S. grown agricultural commodities. The agency is partnering with the port to set up a 25-acre “pop-up” site to make it easier for agricultural companies to fill empty shipping containers. Recently, fewer containers have been made available for U.S. agricultural commodities, as 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.
“COVID-19 revealed vulnerabilities across our supply system, both at our ports and in the agricultural sector,” said Tom Vilsack, U.S. agriculture secretary, in a statement. “As the economy has made an historic recovery, it has put additional strain on the supply chain.
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 funds set aside to address market disruptions in September 2021, USDA will cover 60% of the start-up costs and also help cover additional movement logistics costs at $125 per container.
The agency has estimated the project will cost approximately $5 million and that it will benefit farmers, ranchers, workers, rural communities, and agricultural companies throughout the supply chain.
Leave a Reply