Export-Import Bank
An important financial institution that helps to grow the US shipping market is the Exim Bank, which is also called the Export-Import Bank of the United States. In essence, they are the main export credit agency for shipping from the United States. The history of this institution began in 1934 by an executive order from President Franklin Roosevelt. It is also charted by the US congress today. Currently, there are 5 regional export centers within the United States that allow shippers to export to about 100 authorized nations. The current Chairman of this institution is Fred P Hochberg.
US companies, like manufacturers, that export cargo consistently depend on this institution for loans and for financing the freight export expenses. In many ways, they have helped US companies of all sizes export their products to new markets by financing the shipping expenses. A result has been growing US businesses, a more vibrant economy and a quarter a million export-related jobs are supported annually. However, there is some concern over this financial institution. Some critics argue that they help subsidize giant corporations’ export activities with taxpayer dollars.
No matter how you feel about the Exim Bank, it has played a tremendous role in the US export market. Certainly without it, container shipping would be vastly different than it is today. All shippers should be familiar with the Export-Import Bank of the United States to better understand how shipping works.