US Port Strike Could Affect Ag Shipping

The Financial Times’ Taylor Nicole Rogers reported Sunday that “businesses are bracing for a strike at three dozen US ports that could upend supply chains and raise prices just weeks before election day.”

“The International Longshoremen’s Association says its 25,000 members will walk off the job if the union does not come to a new agreement with the US Maritime Alliance, which represents carriers and marine terminal operators, before their contract expires on September 30,” Rogers reported. “The contract covers all ports between Maine and Texas, including New York, Savannah, Houston, Miami and New Orleans. They receive 41% of the country’s containerized port volume and their closure would have a ‘devastating impact’ on the US economy, a coalition of 177 trade groups warned last week.”

What Would Happen to Ag Shipping?

AgWeb’s Jim Wiesemeyer reported this past weekend that “a potential dock workers’ strike Oct. 1 on the East Coast and Gulf Coast would not significantly impact grain export facilities.”

“The contract ends on September 30, and so far, no formal negotiations have been held and none are scheduled. The strike would have limited impact on bulk grain exports, including corn and soybeans. Bulk grain export facilities would not be affected by the strike as these facilities typically operate with different labor arrangements, such as their own employees or different labor unions,” Wiesemeyer reported. “…While bulk grain exports would be largely unaffected, the strike would impact containerized agricultural exports: Soybeans, soybean meal, and other agricultural products exported via containers would be affected.”

“In 2023, container shipments of soybeans through East and Gulf Coast ports totaled around 100 million bushels, compared to nearly 1 billion bushels of bulk soybean exports from the Gulf,” Wiesemeyer reported.

“While grain export facilities may not be directly impacted, there could be indirect effects on grain producers: The strike would significantly impact exports of chilled or frozen meat, eggs, and other livestock products, which are primarily shipped in containers,” Wiesemeyer reported. “Any harm to the U.S. livestock industry would indirectly affect soybean and grain farmers, as these industries are interconnected. East and Gulf Coast ports accounted for 44% of U.S. waterborne pork exports and 29% of waterborne beef exports in the first half of this year. New York/New Jersey, Wilmington and Charleston were the largest East/Gulf ports for pork exports and Houston was largest for beef.”

Agri-Pulse’s Noah Wicks reported that “if containerized shipping at East and Gulf Coast ports were to stop, agricultural shippers would have two options: find places to safely store farm products or reroute them to ports along the east coast. Both come with costs, said Agriculture Transportation Coalition Director Peter Friedmann.”

“‘It’s never smooth,’ he told Agri-Pulse,” according to Wicks’ reporting. “‘It’s always painful, it’s always expensive, it’s always disruptive to move agriculture from one port to another.'”

“(U.S. Meat Export Federation Vice President for Communications Joe) Schuele said some meat exporters are preparing for a strike by rerouting products to West Coast ports,” Wicks reported. “But sending an influx of products through these ports could create congestion, he added.”

Why is there Potential for a Strike?

NBC News’ Kyla Guilfoil reported that “the International Longshoremen’s Association (ILA), the largest union of maritime workers in North America, has vocalized plans to go on strike at all of its Atlantic and Gulf Coast ports Oct. 1 if a new contract agreement can’t be reached with the United States Maritime Alliance (USMX). The union is arguing for better wages and continued protections against automation and new technology in its terminals.”

“The ILA has argued that the USMX is denying workers fair contracts with adequate wage raises and proper benefits,” Guilfoil reported. “…The union said its rank-and-file members will no longer accept contracts that include small wage increases of a dollar or less. It argued further that for more than three decades, ILA workers only saw annual wage increases of 2.02% per year on average — with some years having wage raise percentages of zero, according to the ILA statement.”