Tag: transportation

Port Strikes and Fertilizer: Navigating Disruptions to Keep Farms Growing

Port of New Orleans

Fertilizer doesn’t just magically appear on farms. It’s part of a global marketplace that requires precise planning, year-round logistics, and a highly complex system behind the scenes. This system ensures that farmers have the nutrients they need, exactly when and where they are needed. A critical component of that system? Ports and harbors.

Let’s explore why ports like Tampa, New Orleans, and Houston are vital for the fertilizer supply chain, and how recent disruptions could have ripple effects across the agriculture sector.

Why Ports Matter for Fertilizer

Fertilizer is a global commodity. It’s bought, sold, and shipped around the world to reach farmers at the optimal time. Some of the most important ports for fertilizer in the U.S. are located along the East and Gulf Coasts. For instance, did you know that 70% of fertilizer imports into the region pass through New Orleans? Similarly, Tampa handles over half of the region’s fertilizer exports, making it another crucial hub.

When these ports operate smoothly, the fertilizer supply chain flows without disruption. But when they don’t, the consequences can be felt far beyond the docks. Farmers rely on these shipments to grow the crops that feed us all, so even a short delay at the port can snowball into much larger problems.

The Impact of the Port Strike

A recent strike affecting over a dozen U.S. ports has sparked serious concern across the fertilizer industry. While the strike primarily targets container and roll-on/roll-off terminals (which handle cars, trucks, and other large cargo), it hasn’t left the fertilizer industry untouched. Fertilizer is usually shipped in bulk—a method where large amounts are loaded directly into ships’ holds—so bulk terminals have mostly been spared from the disruptions.

However, a rising trend complicates things: the growing use of containers to ship fertilizer and other agricultural inputs. This shift means that the strike could now impact a greater portion of the fertilizer supply chain than before. Additionally, this is the first strike impacting East and Gulf coast ports in decades, so the full scope of impacts to the supply chain are unknown, including if the stoppage will cause delays in getting these essential nutrients to farmers.

Fertilizer’s Global Journey

It’s important to remember that fertilizer isn’t just a U.S. product; it’s part of an interconnected global marketplace. The raw materials used to produce fertilizer are sourced from countries like Canada, Russia, and Morocco. Once purchased, these products travel across oceans to key U.S. ports, such as those in New Orleans or Tampa. From there, they’re unloaded and distributed to farms across the country.

The fertilizer that helps crops grow in Iowa or Ohio could have traveled thousands of miles to get there, passing through ports, railways, and highways. Any disruption at a port can create delays that reverberate through the entire supply chain.

Why a Quick Resolution Is Needed

Fertilizer isn’t just needed once per year—it’s required year-round. While planting season is a particularly crucial time, farmers must plan well in advance to ensure they have the right fertilizer to boost yields and maintain soil health. Timing of these applications is also critical to prevent runoff into waterways and loss of the nutrients by farmers resulting in smaller crop yields.

Prolonged port disruptions could leave farmers without the fertilizer they need when they need to apply it. If shipments are delayed, it can lower crop yields, leading to everything from higher food prices to shortages of essential agricultural products. While fertilizer companies have taken steps – like prepurchasing and prepositioning – to mitigate effects from a port shutdown, resolving the current port strike as quickly as possible remains critical.

Wrapping Up

A swift resolution to the ongoing port strike is essential to ensure that farmers receive the nutrients they need to feed the nation—and the world. Both sides in the dispute need to return to the negotiating table to find a resolution. If negotiations falter, it may be time for the White House to intervene and help reopen the ports, keeping the fertilizer supply chain flowing.

The Fertilizer Institute Calls for More Customer Focus from Rail Industry

Arlington, VA – The Fertilizer Institute (TFI) today provided testimony to the Surface Transportation Board (STB) emphasizing the ongoing need for the freight rail industry to shift its focus toward customer service and growth. The fertilizer industry has long relied on rail service for the efficient and safe transport of its products but has struggled with declining service quality, increasing rates, and a lack of attention to customer needs.

“The fertilizer industry is heavily reliant on rail and cannot afford to see continued stagnation in freight rail service,” said TFI vice president of government affairs Ryan Bowley. “Unfortunately, we’ve seen freight volumes plateau, services decline, and rates skyrocket.”

TFI’s testimony comes at a pivotal time for the Class I railroads that make up the backbone of the nation’s freight rail system. The STB’s inquiry into the rail industry’s growth potential highlights a disturbing trend: freight rail carloads have been in decline since 2008, while trucking and other transportation sectors have consistently expanded their capacity.

Bowley also pointed to data showing that while rail employment has dropped and carloads have declined, rail rates have surged. Between 2005 and 2017, rates for transporting critical farm inputs like anhydrous ammonia increased by over 200%. Such price hikes, combined with inconsistent service, have made it difficult for fertilizer companies to meet the just-in-time delivery demands of farmers across the country.

“These rising costs and service failures are particularly troubling for industries like ours, which depend on rail to move bulk products safely,” Bowley continued. “Our members regularly face delays, held shipments, and escalating rates, often without any recourse. It’s clear that a new approach is needed.”

In its testimony, TFI highlighted the need for the rail industry to pivot toward a customer-focused, growth-driven model that balances profitability with service quality. The industry’s  adoption of “Precision-Scheduled Railroading” (PSR) led to deep cuts in staff and equipment, further exacerbating service issues.

TFI’s testimony also praised recent moves by the STB to increase oversight of rail service and pricing, including the implementation of faster emergency service orders while stressing the importance of additional reforms such as expanding access to reciprocal switching, a policy that would allow shippers to switch between competing rail carriers more easily.

“The rail industry should be actively competing for freight, not relying on captive customers to drive revenue,” Bowley concluded. “We need a system where railroads aren’t just collecting more revenue from a shrinking base but are growing their business by serving more customers with better service.”

TFI’s testimony can be read in full here.

###

The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.

TFI Applauds Canadian Rail Resolution

Arlington, VA – The Fertilizer Institute (TFI) today released the below media statement in response to the Canadian government ordering binding arbitration in the labor dispute between Teamsters Canada and the CN and CPKC railroads:

“TFI applauds the Canadian government’s efforts to take action to get the rail system moving again as quickly as possible. The economies of Canada and the United States are closely intertwined, and a dependable and reliable rail network is necessary to support the cross-border fertilizer supply chain and facilitate the movement of critical agricultural inputs on both sides of the border. We also thank US government officials for their engagement with both the industry and their counterparts in Canada. TFI looks forward to continuing to work with policymakers on strengthening supply chains and domestic fertilizer supply and production.”

###

TFI: Canadian Rail Stoppage Resolution Critical

Arlington, VA – The Fertilizer Institute (TFI) today continued to push for a resolution to the rail stoppage in Canada after Thursday saw the shutdown of Canada’s rail networks saying that the impacts from even a short stoppage could have significant and long-lasting consequences.

“Rail transport is the backbone of North America’s supply chain, and fertilizer and agriculture are among the most dependent on rail service,” said TFI President and CEO Corey Rosenbusch, noting that the ripple effect will extend to the entire agricultural industry. “The interconnected and time-specific nature of agriculture means that even short-term disruptions to one segment have wide-ranging implications, affecting everything from grocery store prices to international trade.”

Fertilizers are critical inputs that must reach farmers at specific times during the year to ensure a successful harvest. Canada is the world’s largest producer and the U.S.’s main supplier of potash, a vital potassium-rich mineral used in fertilizers; Canada is also crucial in meeting nitrogen fertilizer needs across the Northern Plains. Ninety percent of U.S. fertilizer imports from Canada arrived by rail, and rail is the primary mode of transportation in moving potash from Canadian mines to ports for export around the globe.

TFI and 34 other U.S. agriculture industry associations wrote leaders on both sides of the border earlier this week urging intervention to avoid disruptions to the cross-border supply chain.

“Given the potential for widespread disruption, it is imperative that Canadian authorities act swiftly to resolve any rail stoppages as the agricultural sector and consumers in both Canada and the United States cannot afford prolonged uncertainty,” Rosenbusch continued. “U.S. policymakers also must recognize the seriousness of this issue and urge Canada to prioritize negotiations and find a resolution quickly.”

The rail shutdown in Canada also highlights the glaring oversight of not including potash on the U.S. Geological Survey’s (USGS) Critical Minerals list.

“The argument against including potash as a critical mineral hinges on the fact that most of the U.S. supply comes from Canada, a stable and reliable trading partner. However, a Canadian rail stoppage shatters this notion, revealing just how vulnerable the U.S. is to disruptions in its potash supply chain,” Rosenbusch explained. “Potash undoubtedly fits the definition of a mineral with a supply chain vulnerable to disruption and essential to our nation’s economy and national security.”

The Canadian rail shutdown exposed additional vulnerabilities in the U.S. supply chain and underscores the need for a more robust strategy to protect essential agricultural inputs.

“Food security is national security, and protecting the supply chain of essential agricultural products like potash is critical to the wellbeing of both nations,” concluded Rosenbusch. “Action must be taken now to ensure that our food systems remain resilient and capable of withstanding future challenges.”

###

The Fertilizer Institute (TFI) is the leading voice of the nation’s fertilizer industry. Tracing its roots back to 1883, TFI’s membership includes fertilizer producers, wholesalers, retailers and trading firms. TFI’s full-time staff, based in Washington, D.C., serves its members through legislative, educational, technical, economic information and public communication programs. Find more information about TFI online at TFI.org and follow us on Twitter at @Fertilizer_Inst. Learn more about TFI’s nutrient stewardship initiatives at nutrientstewardship.org and on Twitter at @4rnutrients.