Top Mozzarella Maker Sees Shipping Woes Persisting All Year

(Bloomberg) -- Leprino Foods, which bills itself as the world's largest mozzarella maker, expects the shipping disruptions hindering agricultural exporters to last all year despite “slight” improvements.

Leprino has had to re-route shipments from Oakland, a major West Coast port for agricultural exports, to alternatives such as Houston and Savannah, Mike Durkin, chief executive officer of the Denver-based dairy company, said Monday in an interview. That has added to the company's costs and caused it to miss export opportunities.

Pressure from the Biden administration and Congress on ocean carriers has led to some improvements for exporters who complain sea freight companies are giving short shrift to U.S. goods as they focus on consumer demand for Asian goods, Durkin said. Farm exporters repeatedly have criticized shipping lines for avoiding time spent loading U.S. goods, returning to Asia empty or charging them extra for freight.

Durkin called on the Senate to enact House-passed legislation that would prevent ocean carriers serving U.S. ports from refusing to load containers with American farm commodities.

U.S. Agriculture Secretary Tom Vilsack announced a plan earlier in the day to subsidize a 25-acre “pop-up” site near the Port of Oakland to make it easier for agricultural companies to fill shipping containers. Vilsack said the USDA would cover 60% of the cost for the site and pay shipping companies $125 per container to cover additional costs.

Durkin said that's “a really good start.”

Leprino's problems shipping its product overseas grew last year and December was the “worst month,” Durkin said. January has improved “slightly,” he said.

Exports were “flat to slightly up” last year but could have increased by 10% to 15%, Durkin said. “The demand was there.”

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