East & Gulf Coast Port Strike Ends

Reuters’ Doyinsola Oladipo and David Shepardson reported late Thursday that “U.S. dock workers and port operators reached a tentative deal that will immediately end a crippling three-day strike that has shut down shipping on the U.S. East Coast and Gulf Coast, the two sides said Thursday.”

“The tentative agreement is for a wage hike of around 62% over six years, two sources familiar with the matter told Reuters, including a worker on the picket line who heard the announcement,” Oladipo and Shepardson reported. “That would raise average wages to about $63 an hour from $39 an hour over the life of the contract.”

“The deal ends the biggest work stoppage of its kind in nearly half a century, which blocked unloading of container ships from Maine to Texas and threatened shortages of everything from bananas to auto parts, triggering a backlog of anchored ships outside major ports,” Oladipo and Shepardson reported. “The union and the port operators said in a statement that they would extend their master contract until Jan. 15, 2025 to return to the bargaining table to negotiate all outstanding issues.”

ABC News’ Max Zahn, Meredith Deliso, and Soo Youn reported that “the tentative agreement does not resolve differences between the union and shipping companies over the use of automated machinery, sources said. That will be a key focus of negotiations between both sides from now until January 15.”

Likely to Take a Few Weeks to Resume Normal Operations

Oladipo and Shepardson reported in a different article Thursday that “at least 54 container ships queued outside the ports as the strike had prevented unloading and threatened shortages of anything from bananas to auto parts. Everstream Analytics calculated the number queuing at 4:00 p.m. ET (2000 GMT). More ships are sure to arrive.”

“Pricing platform Xeneta said it was likely to take two to three weeks for the normal flow of goods to be reestablished,” Oladipo and Shepardson reported. “‘Remember that ships keep calling, so it’s not just a matter of handling the ships already in line, but to work extra hard to run down the congestion before supply chains are re-running,’ Xeneta Chief Analyst Peter Sand told Reuters.”

I applaud the International Longshoremen’s Association and the United States Maritime Alliance for coming together to reopen the East Coast and Gulf ports and ensure the availability of critical supplies for Hurricane Helene recovery and rebuilding.

Collective bargaining works.

— President Biden (@POTUS) October 4, 2024

Strike Could Have Affected Food Supply Chain

Reuters’ Tom Polansek and P.J. Huffstutter reported Wednesday that “dockworkers striking at U.S. East Coast and Gulf Coast ports (were) preventing imports of beef that restaurants and retailers increasingly rely on to make hamburgers due to limited domestic supplies, traders and industry members said.”

“The labor strike (blocked) everything from shipments of automobiles to containers filled with Guatemalan bananas and Italian wine from loading or unloading at dozens of ports from Maine to Texas. Along with beef, imports of seafood and U.S. exports of chicken (were) being disrupted,” Polansek and Huffstutter reported. “Even short-term disruptions to shipments could snarl the broader U.S. food supply chain, according to experts and food importers. If the strike stretches out, the result will be either shortages of some food products, price inflation or both, they said.”

“The beef sector could (have) seen ripple effects if the strike disrupts imports for more than a week, industry members said,” according to Polansek and Huffstutter’s reporting. “U.S. beef supplies tightened after a severe drought and high grain prices prompted ranchers to sell off their cattle, shrinking the nation’s herd to the lowest level in decades.”

“The decline in cattle numbers led to soaring U.S. beef prices and a flurry of cheaper imports. Beef imports from Australia jumped 72% through July this year, according to U.S. Department of Agriculture data. Imports from New Zealand and Brazil have also increased,” Polansek and Huffstutter reported. “In anticipation of the strike, suppliers to U.S. grocers and fast food restaurants ramped up imports of frozen lean beef that is mixed with domestic supplies to make hamburger meat, three industry members said.”

“The strike could (have) increased costs for fast food restaurants if it persists more than a week, said Bob Chudy, a consultant for companies that import beef,” Polansek and Huffstutter reported. “‘All of a sudden, fast food chains that have been relying on much more reasonably priced lean meat from overseas would be forced to turn to domestic alternatives,’ Chudy said.”

“Beef importers could (have) faced demurrage fees if the strike persists, costs that may be passed on to consumers, analysts said,” Polansek and Huffstutter reported.