Transpacific box shortage puts US meat exports at risk

Time:2010-06-07 Browse:43 Author:RISINGSUN

MEAT exporters in the United States face a growing shortage of containers, which puts the current export surge risk, according to the US Meat Export Federation.

American beef exports increased 11 per cent to April year on year while pork fell four per cent and lamb went up 20 per cent, according to the US Agriculture Department statistics.



"I think we`ve done well in the current economic environment. But as exports ramp up, we are experiencing a shortage of containers. Hopefully, it won`t retard sales too much," said Federation president Philip Seng.



Mr Seng said shortages are less severe than two years ago, but remain a problem on the transpacific. "There is a shortage now. We`re concerned that it could get worse," he said.



A lack of containers is a growing problem for farm producers because carriers gauge their needs based on US import boxes, which run two-to-one in revenue generation against export boxes, reports the Journal of Commerce. Export containers are heavier, thus fewer per ship are loaded and depress carrier revenue