Growth in high-value agricultural shipments is driving a containerized export boom at the Port of Oakland.
By Patrick Burnson
Published: December, 2016
Growth in high-value agricultural shipments is driving a containerized export boom at the Port of Oakland.
The port released new figures last month showing sizable increases in fruit, nut and meat exports destined primarily for Asia. The agricultural surge has lifted Oakland total export volume 10 percent over 2015 levels year-to-date.
“We’re seeing a favorable confluence of events,” said Beth Frisher, the port’s manager of business development and international marketing. “Demand for high-quality U.S. agricultural commodities is growing and producers here have been able to respond thanks to good harvests and higher yields.”
Agricultural exports have increased 16 percent in the past year, the port said. Farm products now account for 40 percent of Oakland’s 2016 total exports, up from 38 percent last year.
The port said much of the increase comes from a 30 percent rise in shipments of edible fruits and nuts. The port exported the equivalent of 65,600 20-foot containers full of those products through September. That was up from 50,306 containers a year ago. Grain and seed shipments increased 35 percent in that period, the port said. Meat exports climbed 15 percent.
The port attributed much of its export growth to the rise of Asia’s middle class. It said that consumers with newfound purchasing power are clamoring for higher-quality American farm products. The port said its top five export destinations are China, Japan, South Korea, Hong Kong and Taiwan. Its top five export commodities: wood pulp; fruits and nuts; beverages and spirits; meats; and cereals.
“California agricultural exports have exceeded expectations so far in 2016 and in no small part due to Oakland’s performance,” said Dr. Walter Kemmsies, an economist at JLL, a commercial real estate and investment management firm. “While U.S. agricultural exports have declined in 2016, Oakland has registered an increase.”
Kemmsies said exports are stronger than expected due to tighter stocks in Asia and higher production in the United States. He added that improvement has occurred despite the relatively high foreign exchange value of the dollar. A strong dollar makes U.S. exports less competitive. In that case, transportation efficiency is critical to export competitiveness, he said.
According to Kemmsies, the 2017 export outlook looks more positive due to improving global economic conditions. “Regardless of other factors, Oakland looks poised to outperform again,” he said.
The port said exports make up 52 percent of its total laden container volume. Imports account for the other 48 percent. The near 50-50 split in cargo mix is unique, the port said. Other major U.S. ports are heavily skewed toward imports, reflecting the country’s $36.4 billion trade deficit.
Cal Maritime to Engage Alumni Task Force
A new alumni task force for Vallejo-based California State University Maritime Academy is being organized to define the key elements of a reworked, mutually beneficial relationship between Cal Maritime and its alumni.
“Our primary goal is for Cal Maritime to have an alumni program that delivers the very best in alumni loyalty, involvement and advancement of the alma mater,” said Cal Maritime President Tom Cropper.
Over the coming years, according to Cal Maritime spokespeople, Cal Maritime alumni programming will evolve to reflect the expansion in enrollment and degree offerings at the university. Also, with an expansion of extended learning and professional development offerings, Cal Maritime will be positioned to serve its graduates throughout their careers.
“I ask that the task force have a future-oriented vision of Cal Maritime that will focus upon the special relationship our current cadets and current alumni want to have with one another and with the university,” said Cropper.
The new task force will be charged with identifying best practices as they relate to alumni programming, affinity programs and other areas. The group will develop recommendations for alumni engagement and support for the academy that will provide Cal Maritime with the tools necessary to become a leader in alumni outreach, engagement, programming and support.
Two alumni, Robert Piazza and Greg Zeligman, have been selected as co-chairs of the task force. Eric Cooper, director of alumni relations, will help to round out the committee membership. Independent consultant Suzanne Bailey, who has been instrumental in facilitating Cal Maritime’s strategic planning efforts, has been retained to assist the group.
Final findings and recommendations are scheduled for submission to the president at the end of 2017. “The alumni task force will play a valuable role in advising me, the alumni association, the academy’s foundation board and our campus community in how we will create the best future for Cal Maritime,” said Cropper.
Waterfront Industry Holiday Mixer and Food Drive on December 7
The Pacific Transportation Association joins Women in Logistics for a holiday mixer and food drive on Wednesday, December 7 at the Fat Lady bar and restaurant in Oakland. This event runs from 5 to 8 p.m. and is free to members and students. There will be a no-host bar, and guests who contribute to the food drive will be given a raffle ticket for each item donated.
Patrick Burnson is the Executive Editor of Logistics Management. (www.logisticsmgmt.com)
