MSC Mediterranean Shipping Company Executive Vice President for Maritime Policy & Gov’t Affairs Bud Darr testified to the United States Congress on the state of global supply chains and the critical role of ocean common carriers for the world’s economy. Speaking before the House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation, Bud also briefed members on the industry’s interpretation and initial reaction to OSRA22 legislation, the current inflationary environment, and the state of competition within the ocean shipping market.
Bud was joined by Matthew Leech, President, and CEO of Ports America, on behalf of the National Association of Waterfront Employers, Buddy Allen, President and CEO of American Cotton Pickers Association, and Mario Cordero, Executive Director, Port of Long Beach.
A witness for the World Shipping Council, Bud provided his perspective as the principal maritime policy advisor for the largest container shipping company in the world. Despite enormous disruption throughout the pandemic, U.S. supply chains have stabilized, and global trade continues to facilitate the growth of U.S. farmers and businesses.
Citing recent trade data, Bud confirmed that U.S. agricultural exports this year smashed previous records increasing by $24.7 billion in 2022. Exporters also saw substantial growth in key markets across Southeast Asia, Europe, and the Americas. In addition, MSC and the World Shipping Council were pleased to present evidence that the ocean shipping market remains competitive to members in attendance. Both the Federal Maritime Commission and the European Union agreed that exceptionally high freight rates were caused by unprecedented supply chain disruptions during the onset of the global pandemic.
Ocean freight rates have returned to pre-pandemic levels despite a high inflationary environment for consumer goods, food, and fuel oil. As Bud cited, MSC and other ocean carriers that are members of the WSC have invested substantially to improve fleet efficiency, performance, and capacity. Moreover, container shipping remains the most efficient method of global transportation despite a lack of net-zero fuel solutions that would meet economic demand. MSC will continue to provide transportation solutions that bring measurable benefits to American farmers, businesses, and consumers.
MSC on behalf of the World Shipping Council was grateful to join esteemed witnesses to brief Congress and members of the Subcommittee on these important issues and looks forward to future opportunities to engage in productive dialogue with U.S. lawmakers.
MSC Mediterranean Shipping Company, headquartered in Geneva, Switzerland, is a global leader in transportation and logistics, privately owned and founded in 1970 by Gianluigi Aponte. As one of the world’s leading container shipping lines, MSC has 675 offices across 155 countries worldwide with over 150,000 employees. With access to an integrated network of road, rail and sea transport resources which stretches across the globe, the company prides itself on delivering global service with local knowledge. MSC’s shipping line sails on more than 260 trade routes, calling at over 520 ports.
For more information visit www.msc.com
MSC Mediterranean Shipping Company