USDA to support agricultural exporters with 'pop-up' yard at Port of Oakland

The US Department of Agriculture is set to help fund costs for a temporary 22-acre yard for export distribution, the Port of Oakland said Feb. 1.

The USDA will support 60% of initial costs for the export depot, which will provide agricultural exporters with priority access to refrigerated containers. Additionally, truckers will be permitted to bypass marine terminal gates, a notable chokepoint in the import and export process.

The temporary yard will serve as a restorative force for the port which has suffered from ship and container logjams during the last year, stymieing US shippers looking to move through the gateway.

"The global shipping logjam created dockside congestion of empty containers that's affecting the transport of Oakland exports," the port said in a statement Feb. 1. "[The solution is] a temporary 22-acre waterfront "pop-up" yard dedicated to export distribution ... providing relief to a multi-billion dollar industry struggling from global supply chain snarls."

As it stands, US exporters are under pressure from high freight rates and adverse pricing incentives on the part of ocean carriers.

Export, or backhaul, rates from the North American West Coast to North Asia are currently at a steep discount to headhaul rates. There is little economic incentive for ocean carriers to load North American exports, which are typically low-value agricultural products and raw materials and are often inland bookings requiring extended lease of the container.

Platts Container Rate 14 -- West Coast North America to North Asia -- was assessed Feb. 1 at $1,000/FEU, significantly lower than the $9,500/FEU headhaul rate.

Empty exports at the Port of Oakland climbed 8.1% during 2021 to 373,404 TEU.