Dockworkers Begin Strike at East and Gulf Coast Ports

The Associated Press’ Tom Krisher and Tassanee Vejpongsa reported early Tuesday morning that “dockworkers at ports from Maine to Texas began walking picket lines early Tuesday in a strike over wages and automation that could reignite inflation and cause shortages of goods if it goes on more than a few weeks.”

“The contract between the ports and about 45,000 members of the International Longshoremen’s Association expired at midnight, and even though progress was reported in talks on Monday, the workers went on strike. The strike affecting 36 ports is the first by the union since 1977,” Krisher and Vejpongsa reported.

NOW: The port strike has begun here in Boston.

Members of the International Longshoremen’s Association are marching to the Conley Terminal to hit the picket line after failed contract negotiations with the US Maritime Alliance. This will impact ports from ME to TX. @NBC10Boston pic.twitter.com/w7l3JC9iAB

— Kirsten Glavin (@kirstenglavin) October 1, 2024

CBS News’ Kate Gibson reported Monday that the affected ports “handle more than 68% of all containerized exports in the U.S. and roughly 56% of containerized imports, according to industry data. So even a short strike would cause significant disruptions in regional trade flows.”

How Would Agriculture be Affected?

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

“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.”

Fox Business’ Suzanne O’Halloran reported Monday that “the strike by workers at ports from Texas to Maine will reportedly hammer U.S. farmers already dealing with an economic downward spiral.”

“‘We don’t need another hit right now. And this is definitely going to have an impact on agriculture,’ Kip Tom, former United States ambassador to the United Nations Agencies for Food and Agriculture during the Trump administration, told FOX Business,” according to O’Halloran’s reporting. “…A strike would have a domino effect on container availability, storage, rail and truck cargo as well as food supply.”

Politico’s Grace Yarrow reported Monday that “nearly 200 agriculture groups warned President Joe Biden of the potential fallout of such a strike in a letter sent to the White House Friday, asking for help to mitigate the economic toll of the strike and other transportation challenges. The letter, headed by the National Grain and Feed Association, highlighted that ‘the impact on the supply chain will quickly reverberate throughout the agricultural economy, shutting down operations and potentially lowering farmgate prices’ if the strike takes effect.”

 

View this post on Instagram

 

A post shared by ILA Education/History (@ila_education_history)

Overall Economic Effects

Overall, “a strike would reduce U.S. economic activity by between $4.5 billion and $7.5 billion for every week it continues, according to analysts at Oxford Economics,” Gibson reported. “The investment research firm estimates it would take up to a month to clear the backlog of shipments that pile up while ports remain shut.”

“Although West Coast terminals could absorb some cargo diverted from eastern ports, they couldn’t handle it all, nor could the U.S. rail system, experts say,” Gibson reported. “Should a strike persist longer than a month or so, some companies could face shortages of parts and other inputs. Much of the raw materials that go into a range of products flow through the East and Gulf Coast ports, such as cotton, wood and copper. The auto and pharmaceutical industries, which maintain lean inventories, could be affected, while port shutdowns in Miami and Norfolk could affect tobacco companies.”

“In addition, a strike could hamper shipments of products such as bananas, manufacturing components and plywood, interrupting the flow both of consumer goods and industrial parts for factories,” Gibson reported. “Fresh meat and other refrigerated food could spoil, resulting in shortages and increased prices.”