Port Labor Dispute Affecting Red Meat Exports

U.S. agriculture is bracing for a potential work stoppage at East and Gulf Coast ports that could greatly disrupt American red meat 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.  However, the contract extension will expire on January 15th. 

U.S. Meat Export Federation President and CEO Dan Halstrom said 30% of waterborne beef exports, and 45% of waterborne pork exports depart from the East and Gulf coast ports.  And he added the impasse is already impacting the industry.

"We already have exporters, I'm sure, diverting cargo, or planning to divert cargo.  Ocean carriers are anticipating that, so we already have surcharges in place, and probably there will be more in place between now and the 15th of January.  And a lot of our cargo is refrigerated, so there's also the very real possibility that prior to January 15th, a lot of these ports may stop accepting refrigerated cargo just because of the uncertainty around the contract."

He noted a port strike could impact U.S. beef and pork's advantage as a reliable supplier.  Halstrom added for every week of a potential shutdown, it would be a loss in excess of $100 million just on beef and pork exports.