Dairy Industry Calls for Maritime Shipping Reform Before Congress

A dairy industry representative testified before a House subcommittee about shipping challenges affecting American dairy exports. The industry exported $9.6 billion worth of dairy products last year but faces ongoing disruptions from foreign-owned shipping companies.

A representative from the dairy industry appeared before a House Judiciary subcommittee today to discuss shipping problems that continue to plague American dairy exporters.

Tony Rice, who serves as Senior Director of Trade Policy for both the National Milk Producers Federation and U.S. Dairy Export Council, spoke to the House Judiciary Subcommittee on the Administrative State, Regulatory Reform and Antitrust about ongoing maritime transportation issues.

Last year, the American dairy sector shipped $9.6 billion worth of products overseas, including three million metric tons of cheese, milk powder, whey protein and other dairy goods. This massive export volume makes dependable shipping crucial for the industry’s financial health. However, dairy exporters have limited options when it comes to ocean transportation, with nearly all carriers being owned by foreign companies.

“Dairy farmers milk their cows 365 days a year,” Rice explained during his testimony. “When export shipments are delayed, cancelled, or become more expensive to move, the disruptions ripple back through the supply chain and ultimately affect farm income.”

Rice referenced the supply chain disruptions experienced during the pandemic, which caused significant delays, frequent booking cancellations and severe port bottlenecks. These problems resulted in billions of dollars in unexpected expenses and missed sales opportunities for dairy producers across the country. Although Congress passed the Ocean Shipping Reform Act of 2022 to tackle some unfair fee practices, Rice emphasized that American dairy exporters still deal with unpredictable operations when their bookings get turned down, ships bypass scheduled port stops, or delivery schedules change without warning.

The dairy industry is pushing for several solutions to these ongoing problems, including increased investment in America’s maritime infrastructure to boost domestic shipbuilding capabilities, stronger oversight by the Federal Maritime Commission of international shipping companies, and more transparency from ocean carriers regarding their booking procedures.

“We recognize the importance of efficient global shipping networks,” Rice stated. “Our concern is ensuring that those networks work for American dairy exporters as well as they work for global carriers.”