See the update below for a comprehensive review of the reconciliation process.
On August 11th, ACSA leaders including Buddy Allen of American Cotton Shippers Association, Michael Symonanis of Allenberg Cotton Co., Donna Lemm of IMC Companies, and Neely Mallory of Mallory Alexander International Logistics participated in a Federal Maritime Commission Memphis Supply Chain Stakeholder Meeting led by Commissioner Rebecca Dye. Over 100 stakeholders participated in the meeting including FMC Chairman Dan Maffei, Surface Transportation Board (STB) Chairman Martin Oberman, STB Board Member Patrick Fuchs, and key Congressional staff. In the meeting participants share testimony regarding supply chain congestion in the Memphis marketplace and the impact on their companies. Following that, Buddy shared a potential legislative solution by creating an interoperable, grey pool pilot in Memphis. Meeting summary below. Whitepaper created by the Memphis Supply Chain Innovation Team that discusses the problem and potential solution can be found below.
Yesterday, ACSA co-signed a letter to Representatives John Garamendi (D-CA) and Dusty Johnson (R-SD) endorsing the Ocean Shipping Reform Act of 2021 (OSRA21). The Act focuses on unreasonable detention and demurrage charges, and carrier rejection of U.S. export cargo. We believe that addressing these concerns will assist U.S. exports such as cotton to remain competitive in the global market.
On July 23rd, Representatives Jim Costa, Salud Carbajal, Jimmy Panetta, Tom O’Halleran, John Garamendi, and Ann Kirkpatrick wrote a letter to Secretary Vilsack asking him to assistant cotton merchandisers who have experienced significant losses due to the COVID-19 pandemic. The letter states that not only did cotton experience a huge downturn in consumption during the pandemic, but further impacts for cotton are “particularly acute” given “the heavy reliance on containerized shipments and the use of Los Angeles/Long Beach ports.” The ACSA staff is very thankful for the support of the Western Congressional leaders.
Yesterday, Representative David Scott (D-GA), Chairman of the House Committee on Agriculture, Representative Sanford Bishop (D-GA), Chairman of the Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, and Senator Raphael Warnock (D-GA), the sole cotton state Democrat on the Senate Committee on Agriculture, Nutrition, and Forestry wrote a letter to Secretary Vilsack asking him to use a portion of the discretionary funding given to the USDA through previous COVID-19 relief packages to assist cotton merchandisers. This coalition of key leaders referenced the additional assumed risks and costs created from COVID-19 related diminished demand and supply chain disruptions, recognizing the “important roles of merchandisers in providing liquidity and risk management to producers.” The ACSA staff is very grateful for the support displayed by these Congressional leaders.
Yesterday, the House Transportation Subcommittee on Coast Guard and Maritime Transportation held a hearing entitled “Impacts of Shipping Container Shortages, Delays, and Increased Demand on the North American Supply Chain.” The hearing featured two panels: the first panel included Federal Maritime Commission (FMC or Commission) Chairman Daniel Maffei and Commissioner Rebecca Dye, and the second panel included representatives from the private sector. Below are several key takeaways from the hearing.
On June 9, 2021, the U.S. Commodity Futures Trading Commission held a meeting of its Agricultural Advisory Committee, which ACSA President/CEO Buddy Allen and Vice-Chairman Tommy Hayden sit on. The Committee received a report from the Subcommittee to Evaluate Commission Policy with Respect to Implementation of Amendments to Enumerated Agricultural Futures Contracts with Open Interest. A special thank you to Azeez Syed of Olam Cotton for his work on the Subcommittee, and David Rossen of Allenberg Cotton Company for serving as a panelist during the meeting. The meeting also included a discussion on global ag commodity derivatives contracts and other agricultural risk management issues.
On April 16, 2021, the China Cotton Association (CCA) wrote the Committee for International Co-operation Between Cotton Associations (CICCA) a letter regarding cotton in the Xinjiang region of China. The China Cotton Association also released a statement regarding the recent boycott on Xinjiang cotton by apparel brands. See both the letter and statement below.
On April 14, 2021, Memphis stakeholders wrote a letter to Chairman Oberman of the Surface Transportation Board expressing the need for assistance in resolving the current inland rail crisis affecting importers, exporters and motor carriers in the area. See the full letter below.
On March 15, 2021, Mississippi State University published the expected PLC payments for the 2020 year. Please see the link below for more information.