A coalition of 55 agriculture groups—including the Agribusiness Council of Indiana and the National Council of Farmer Cooperatives—have sent President Biden a letter urging his administration to step in to avert a potential strike that could occur at East Coast and Gulf Coast ports beginning on Tuesday October 1.
The International Longshoremen’s Association (ILA) says it will begin its strike if a new labor contract isn’t agreed upon with the United States Maritime Alliance (USMX) by Monday, Sept. 30. The main areas of dispute in the negotiations relate to wages, the use of automation, health care, and container royalties.
A strike by the ILA, which represents as many as 85,000 longshoremen who work on the Atlantic and Gulf Coasts, Great Lakes, and major U.S. rivers, could have a significant impact on the flow of ag exports set to leave the U.S. for foreign destinations—especially during the U.S. harvest season.
“Approximately 40% of U.S. containerized agricultural exports move through East and Gulf Coast ports, and we believe the time has come for the U.S. government to intervene and ensure port operations do not stop,” the groups said in its letter, which was also addressed to Pete Buttigieg, Secretary of the Department of Transportation; Julie Su, Acting Secretary of the Department of Labor; Gina Raimondo, Secretary of the Department of Commerce; and Tom Vilsack, USDA Secretary.
$1.4 billion in weekly ag trade could be at risk during the strike, according to the American Farm Bureau Federation.
Negotiations between the International Longshoremen’s Association union and the United States Maritime Alliance employer group appear to be deadlocked on pay as the current contract expires at midnight on Monday, Sept. 30.
The Biden administration says it doesn’t intend to invoke the Taft-Hartley Act to prevent a strike.
To provide some perspective on the impact the strike could have on ag exports, the Mississippi Gulf Region near New Orleans is the number one export region for soybeans, exporting 27 million metric tons from the region in 2023.
In addition to having a negative impact on exports of soybeans, soybean meal, and other ag products that are exported via container, an ILA strike also would have a significant impact on chilled or frozen meat, eggs, etc. that are exported from the U.S.
A walkout would be the first East Coast dock strike since 1977.
CLICK HERE to read the full letter.
