Delays at Port of Oakland in California have frustrated US nut exporters. They are now talking with rail and steamship carriers to export their products via a new trade route.
Rachel Campbell, a spokeswoman for maritime operation, said the farm groups in Northern California, including those in walnut, rice, and wine suppliers, had discussions with the most significant US railways, the BNSF Railway Co., and the third largest container shipping line in the world, CMA CGM SA. They also had talks with state officials about plans to haul containers from central valley in California to the biggest port in Los Angeles.
The central valley produces about 25 percent of all the food produced in the US.
Alternative Port
The objective is to find an alternative to the port in Oakland. The Bay area port has been struggling with massive supply chain snarls. Global shipments of goods like walnuts and almonds, the bulk of which is sent from the US, are held up.
The proposal backers say a hub closer to the farms will speed up things and reduce the shipment turnaround time. It will also help to ease traffic bottlenecks on highways and lower dangerous greenhouse gases. Crucial spaces can also be freed at the Terminals at Oakland Port.
GIG Work Law
After Los Angeles and Long Beach, California has the busiest port. The Oakland Port had to deal with issues ranging from labor to capacity during the coronavirus pandemic. Truckers protested last month against a gig-work law that will take out 70,000 California drivers off the road, and the hub was shut down for a week as truckers blocked operations.
This blockade resulted in outbound shipments falling 30% in July compared to the earlier month, and it was the biggest fall since 1997, at least.
Stockton, California-based Avanti Nut Co., vice president Nina Solari said that farmers are considering container shipments from Oakdale Central valleys to the twin ports of Long Beach and Los Angeles. Solari, involved in the talks, said that Oakdale is farther from Long Beach-Los Angeles by a few hundred miles.
Solari noted that the new options would come at an extra cost. Still, they have to incur because at least they are getting opportunities to move the desperately needed freight.
In a statement, Port of Los Angeles said they are in talks to increase agricultural exports to California.
The Rice Commission of California said in a statement that it has participated in the discussions on exploring new options but is currently unsure of its viability.
BNSF has been approached for the new proposal but has not yet signed it. Various farm groups and the CMA CGM did not respond to the request for comments.