U.S. agriculture is bracing for a potential work stoppage at East and Gulf Coast ports that could greatly disrupt U.S. exports. Contract negotiations between the International Longshoremen’s Association and the U.S. Maritime Alliance broke down in mid-November over issues related to automation and have shown little progress over the past month. The two sides reached a tentative agreement on wages in early October and temporarily extended the existing labor agreement, bringing an end to a three-day strike work stoppage. However, that contract extension is set to expire Jan. 15, 2025.
The uncertainty is already impacting U.S. red meat exports, according to U.S. Meat Export Federation President and CEO Dan Halstrom, as ocean carriers have begun announcing surcharges related to a potential strike and exporters are forced to look, where possible, to divert shipments to other ports.
Forty-five percent of waterborne U.S. pork exports ship out of the East and Gulf Coast ports, and on the beef side it is 30%. All told, about $100 million of U.S. red meat is shipped out of the affected ports on a weekly basis. Another strike would limit shipment options, particularly for chilled product, and would hurt the U.S. reputation as a reliable supplier.
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