Daily Sabah logo

Politics
Diplomacy Legislation War On Terror EU Affairs Elections News Analysis
TÜRKİYE
Istanbul Education Investigations Minorities Expat Corner Diaspora
World
Mid-East Europe Americas Asia Pacific Africa Syrian Crisis Islamophobia
Business
Automotive Economy Energy Finance Tourism Tech Defense Transportation News Analysis
Lifestyle
Health Environment Travel Food Fashion Science Religion History Feature Expat Corner
Arts
Cinema Music Events Portrait Reviews Performing Arts
Sports
Football Basketball Motorsports Tennis
Opinion
Columns Op-Ed Reader's Corner Editorial
PHOTO GALLERY
JOBS ABOUT US RSS PRIVACY CONTACT US
© Turkuvaz Haberleşme ve Yayıncılık 2023

Daily Sabah logo

عربي
  • Politics
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • Elections
    • News Analysis
  • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Expat Corner
    • Diaspora
  • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • Islamophobia
  • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
  • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
  • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Reviews
    • Performing Arts
  • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
  • Gallery
  • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
  • TV
  • Business
  • Automotive
  • Economy
  • Energy
  • Finance
  • Tourism
  • Tech
  • Defense
  • Transportation
  • News Analysis

California agriculture exports disrupted by supply chain delays

by ASSOCIATED PRESS

SACRAMENTO, California Nov 04, 2021 - 11:19 am GMT+3
Containers are stacked at the Port of Long Beach, California, U.S., Oct. 1, 2021. (AP File Photo)
Containers are stacked at the Port of Long Beach, California, U.S., Oct. 1, 2021. (AP File Photo)
by ASSOCIATED PRESS Nov 04, 2021 11:19 am
RECOMMENDED
A woman reacts next to a collapsed building during search operations in the aftermath of a powerful earthquake in the Elbistan district of Kahramanmaraş, southeastern Türkiye, Feb. 7, 2023. (EPA Photo)

Output aside as industrialists in Türkiye's quake zone focus on survivors

earthquake-in-türkiye

As drought poses threats to future harvests, farmers in California now say they also have to contend with having no way to export their crops due to global supply chain problems that have left container ships stuck on the Southern California coast with nowhere to deliver their goods.

Problems with the supply chain have retailers worried their shelves – and their customers' online shopping carts – will be empty during the crucial holiday shopping season, prompting emergency actions from state and federal leaders to clear up the logjam.

But the backlog of ships entering United States waters also means fewer are making the trek back across the Pacific Ocean, leaving the farmers in one of the nation's important agriculture regions with nowhere to send their products.

“We're at the mercy of foreign shipping companies,” said Roger Isom, president and CEO of the California Cotton Ginners and Growers Association and the Western Agricultural Processors Association. “We're in a game, somebody changed the rules on us, and we have no way to correct it,” he added.

California is the nation's only supplier of tree nuts – almonds, walnuts and pistachios. According to the California Department of Food and Agriculture, most of them are sold to other countries, totaling more than $8.1 billion in exports in 2019.

But last month, Isom said more than 80% of scheduled shipments were canceled. As a result, processors have resorted to paying much more to ship their products to other ports, sending pistachios and walnuts by train to Texas and Maryland and flying bales of cotton to Peru. He added that they are losing money on these sales, but have to do it or risk losing their customers.

It's mainly a problem for walnuts, which are in high demand in Europe for the Christmas holiday. But Isom said California's orders are “now being filled by other countries.”

“One of our members lost $7.5 million in one month of sales because of an inability to fill timely commitments,” Isom told state lawmakers during an informational hearing on the global supply chain problems held on Wednesday.

One reason for the shortage of ships is the high demand for products that have increased the cost of shipping. Many ocean carriers hurry back to Asia once they leave Southern California, bypassing the smaller port in Oakland where most of the state's tree nuts are shipped.

Danny Wan, executive director of the Port of Oakland and the president of the California Association of Port Authorities, last week said one of the port's container terminals was empty of both containers and ships.

“The operator tells me this is the first time in the history where they are operating in Oakland where they have not had one vessel call,” Wan said. “This is an example of the supply chain dictating this kind of market distortion.”

But the solution is not as easy as simply turning some ships around in Los Angeles and sending them north to Oakland. Assemblyman Patrick O'Donnell, chair of the Assembly Select Committee on Ports and Goods Movement, said ocean carriers need relationships with terminal operators, trucking companies and warehouses – all of which require contracts to be negotiated.

“That takes time. You can't just turn on a dime,” he said.

Mike Jacob, vice president and general counsel for the Pacific Merchant Shipping Association, said “it's important to us” to reestablish shipping connections in ports in both Northern California and the Pacific Northwest, adding three companies have dedicated direct service calls to the Oakland port while two more have plans to start in January.

The Biden administration announced last month the Los Angeles port would soon begin operating 24 hours a day to help clear the backlog of ships. California Gov. Gavin Newsom, a Democrat, has waived some state regulations to allow companies to pack more cargo on trucks.

“In order to solve this problem, every single stakeholder in (the) supply chain have to step up and make difficult choices – including the state,” said Dee Dee Myers, a senior advisor to Newsom and director of the Governor's Office of Business and Economic Development.

According to an analysis of trade data by Michigan State University, fruits and nuts are California's fifth-largest export sector, trailing electrical and industrial machinery and motor vehicles and their parts.

California exports accounted for more than 10% of all U.S. exports in 2020. However, when it comes to agriculture, California accounted for 16% of all U.S. exports in 2019.

“A great deal of attention is on imports and issues confronting these entities bringing in goods which are important,” said Assemblymember Cecilia Aguiar-Curry, a Democrat whose rural Northern California district includes many farmers. “However, California agriculture depends heavily on the exporting of its goods – and I cannot overstate this enough – we are in an urgent position.”

RECOMMENDED
A woman reacts next to a collapsed building during search operations in the aftermath of a powerful earthquake in the Elbistan district of Kahramanmaraş, southeastern Türkiye, Feb. 7, 2023. (EPA Photo)

Output aside as industrialists in Türkiye's quake zone focus on survivors

earthquake-in-türkiye
  • shortlink copied
  • Last Update: Nov 04, 2021 12:53 pm
    RELATED TOPICS
    fight-against-terrorism DEUTSCHE-BANK US-LIBYA-RELATIONS
    KEYWORDS
    agriculture supply chain disruptions
    The Daily Sabah Newsletter
    Keep up to date with what’s happening in Turkey, it’s region and the world.
    You can unsubscribe at any time. By signing up you are agreeing to our Terms of Use and Privacy Policy. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
    Rescue teams gather in Istanbul Airport to head to zones hit by a 7.7 magnitude earthquake in southeastern Türkiye. (DHA Photo)

    Condolences messages pour for victims of quake in SE Türkiye

    earthquake
    No Image

    Want to help earthquake victims in Türkiye? Here's how 

    earthquake-in-türkiye

    Earthquakes in Türkiye moved Anatolia up to 10 meters: Seismologist

    türkiye

    Death toll from deadly quakes in Türkiye surpasses 9,000

    türkiye
    No Image
    Sayonara to Madrid, hola to Tokyo Fashion Week 2022
    PHOTOGALLERY
    • POLITICS
    • Diplomacy
    • Legislation
    • War On Terror
    • EU Affairs
    • News Analysis
    • TÜRKİYE
    • Istanbul
    • Education
    • Investigations
    • Minorities
    • Diaspora
    • World
    • Mid-East
    • Europe
    • Americas
    • Asia Pacific
    • Africa
    • Syrian Crisis
    • İslamophobia
    • Business
    • Automotive
    • Economy
    • Energy
    • Finance
    • Tourism
    • Tech
    • Defense
    • Transportation
    • News Analysis
    • Lifestyle
    • Health
    • Environment
    • Travel
    • Food
    • Fashion
    • Science
    • Religion
    • History
    • Feature
    • Expat Corner
    • Arts
    • Cinema
    • Music
    • Events
    • Portrait
    • Performing Arts
    • Reviews
    • Sports
    • Football
    • Basketball
    • Motorsports
    • Tennis
    • Opinion
    • Columns
    • Op-Ed
    • Reader's Corner
    • Editorial
    • Photo gallery
    • Jobs
    • privacy
    • about us
    • contact us
    • RSS
    © Turkuvaz Haberleşme ve Yayıncılık 2021