USDA plans to fund two shipping pilot projects aimed at easing port congestion and helping agricultural exporters.

The first project involves getting additional chassis, the frames that carry shipping containers, for the Port of Houston. The second involves subsidizing transportation to and from the Port of Tacoma’s 16-acre “pop-up” site, a temporary storage space for agricultural containers.

In Washington state, USDA will work with The Northwest Seaport Alliance, a marine cargo partnership between the ports of Seattle and Tacoma, to expand the agency’s “container assistance program.”

According to The Northwest Seaport Alliance, the pilot project will enhance access to a 16-acre pop-up site at the West Hylebos near-dock storage area, expanding the site’s ability to accept dry agricultural or refrigerated containers for temporary storage.

The goal is to reduce operational hurdles and costs, enabling agriculture producers to load exports on ships more quickly at marine terminals in Tacoma.

Although pop-up sites are useful in relieving congestion, they’re expensive for exporters, who must move containers twice — first to the preposition location at the pop-up site, then later to the terminal loading the vessel.

USDA plans to subsidize transport to and from the pop-up site through its Farm Service Agency, which will pay $200 per dry container and $400 per refrigerated container to help cover the logistical costs of moving containers twice.

FSA will make monthly direct payments to agricultural companies and cooperatives on a per-container basis.

Experts say the project is sorely needed because congestion and scheduling issues, combined with prioritization of returning containers empty to Asia, have led to significant barriers for exporters in recent months, resulting in lost markets.

In the last six months of 2021, The Northwest Seaport Alliance saw a nearly 30% decline in export of agricultural commodities and a higher ratio of empty versus loaded container exports.

Although trade experts say this pilot project can’t solve all challenges associated with exports, it may help ease logistics.

“The partnership with the USDA will further our efforts and provide needed relief for ag producers in our region,” said Deanna Keller, manager member of the seaport alliance and vice president of the Port of Tacoma Commission.

Ryan Calkins, co-chair of the seaport alliance and president of the Port of Seattle Commission, said he appreciates Agriculture Secretary Tom Vilsack’s leadership in this project.

The alliance, he said, “look(s) forward to this pilot program reducing costs for ag producers and helping bring more U.S. exports to foreign markets.”

Under the same container assistance program, USDA also plans to increase capacity for exporting chilled and frozen agricultural commodities at the Port of Houston in Texas.

The agency plans to do this by helping the port obtain 1,060 additional chassis to transport containers. USDA’s Commodity Credit Corporation will use money set aside to alleviate market disruptions in September 2021, and the Agricultural Marketing Service will cover 50% of the cost of obtaining and leasing chassis at the Port of Houston during the first year of its five-year lease.

Agricultural exporters can apply for funding under the new USDA projects on the agency’s website.