Port strike has major agricultural implications – Ohio Ag Net

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Agricultural groups nationwide are concerned about the massive implications of the current port labor strike.

The International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) is the largest union of maritime workers in North America, representing nearly 85,000 longshoremen across the Atlantic and Gulf coasts, Great Lakes, major U.S. rivers, Puerto Rico, Eastern Canada and the Bahamas. ILA members load and unload cargo at ocean port terminals, particularly in container and roll-on/roll-off operations. USMX represents approximately 40 ocean carriers and terminal operators where ILA members work.

“The union is reportedly seeking wage increases exceeding the 32% won last year by the International Longshore and Warehouse Union, which represents many West Coast port workers. Additional demands include a higher starting wage for new employees, enhanced health care benefits, increased employer contributions to retirement plans and keeping provisions that prohibit automation to prevent job losses,” said Daniel Munch, American Farm Bureau economist. “In 2023, over 143 million metric tons of agricultural products, worth over $122 billion were transported through ocean ports. This represented just over 70% of U.S. agricultural exports value and 75% of volume. On the import side, U.S. ports received over 39.4 million metric tons in agricultural products, worth over $110 billion and accounting for 56% of imports by value. These figures highlight how crucial ocean ports are to U.S. agricultural trade.”

Over a one-week period, the potential value of disrupted containerized ag exports is estimated at $318 million, Munch said.

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) called on the Biden Administration to immediately intervene in the port labor strike. The dairy organizations warned that this disruption could have a devastating impact on American dairy farmers and exporters who rely on the smooth functioning of these ports to get their products to international markets.

“The administration must act now to bring both sides back to the table. The stakes are too high,” said Gregg Doud, president and CEO of NMPF. “This strike puts the livelihoods of American dairy farmers and the strength of our supply chain at risk. The administration needs to step in and end the strike before further damage is done.”

The U.S. dairy industry relies heavily on ports to maintain access to global markets. In 2023, over 530,000 twenty-foot equivalent units of dairy products, valued at $1.7 billion, were shipped through East and Gulf ports, accounting for 21% of total U.S. dairy exports by volume. The ongoing strike directly jeopardizes $32 million in dairy exports per week, with additional indirect consequences looming as exporters are forced to reroute shipments and face rising transportation costs.

“Global customers depend on the reliability of U.S. dairy products,” said Krysta Harden, president and CEO of USDEC. “Delays caused by this strike not only risk damaging those relationships but also severely impact perishable dairy products that require timely delivery. The negotiating parties need to come together to find a resolution and ensure port operations resume as soon as possible.”

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