Posts Tagged “port strike”
(Since this article was written the U.S. dockworkers and the U.S. Maritime Alliance, effective the evening of October 3, have extended their existing contract through January 15. This will provide time to negotiate a new contract.)
The Food Industry Association of Arlington, VA and its President and CEO Leslie G. Sarasin offered the following statement on the East and Gulf Coasts ports strike by the International Longshoremen’s Association (ILA):
“There’s never a good time for a strike. Now, the current strike is compounding the horrific situation in the Southeastern United States resulting from Hurricane Helene and parties need to return to the negotiating table.
“We must be focused on helping the communities and people devastated by Hurricane Helene. The strike on the East and Gulf Coasts by the International Longshoremen’s Association threatens to make the situation even more dire. This action has already begun to jeopardize food supply chain operations, and the strike has the potential to disrupt the long-term stability of markets and commodities, namely pharmaceuticals, seafood, produce, meat, cheese, ingredients, and packaging.
“An extended strike will likely cause dramatic increases in the cost and availability of goods, intensifying this inflationary environment. And, unfortunately, this situation cannot be addressed by a switch to alternative ports due to the freight costs and time associated with transporting products back to the East Coast.
“Compounding the implications of this strike, we are facing a humanitarian crisis of extraordinary proportions. Hurricane Helene’s aftermath in communities across North Carolina, Virginia, Tennessee, Georgia, Florida and South Carolina have left tremendous flooding and washed-out roads, destruction of neighborhoods, no power, and no potable water. Many of our food retail and product supplier members are trying desperately to ensure their associates’ safety and get their businesses back online to serve these devastated communities and support their own employees who have been displaced.
“We urge the negotiating parties to come to a swift resolution as we all focus on assisting these devastated communities.”
Chilean Fruit Growers Concerned
Chilean fruit growers are expressing concern about potential harm to trade because of the port strike on the East Coast of the U.S.
The International Longshoremen’s Association began the strike Oct. 1 against the United States Maritime Alliance.
The port strike will directly affect shipments of Chilean fruit to the North America, said the Chilean grower group Federation of Fruit Producers of Chile, or Fedefruta.
“We find it regrettable that port operations are paralyzed, and at the same time we call on the parties to reconcile, agree and resolve their differences so that ports in the U.S. can continue to function,” Víctor Catán, president of Fedefruta, said in a statement. “We believe that tremendous damage is done to the U.S. population that is deprived of goods and food, in our case making it impossible to enter the entry of top quality fruits that supply the different supermarkets in that country.”
In 2023, Chile exporters shipped more than $1 billion of fresh fruit to the Philadelphia port alone, according to USDA statistics. That represents 56% of total Chilean fruit exports to the U.S. in 2023 of $1.78 billion, the USDA said.
While the period from January through April represents the peak window for Chilean fresh fruit shipments to the U.S., imports from Chile occur in every month of the year. Last year the U.S. imported $134 million of Chilean fruit in October, or about 8% of the total 2023 value of Chilean fruit imports.
(Since this article was written the U.S. dockworkers and the U.S. Maritime Alliance have extended their existing contract through January 15. This will provide time to negotiate a new contract.)
Allen Lund Company
The East Coast and Gulf Coast dockworkers’ strike, which began on October 1, 2024, has disrupted port operations across major hubs from New York to Texas. The International Longshoremen’s Association (ILA) initiated the strike after failing to secure a new contract with the U.S. Maritime Alliance (USMX). The strike currently involves 45,000 union members and affects 36 ports. With dockworkers walking off the job, billions of dollars in goods—ranging from consumer items to critical industrial components—remain stranded at ports. The strike could significantly impact supply chains, especially for perishable goods, with estimates suggesting economic losses of up to $5 billion per day as the stoppage continues.
According to NPR, the primary issues of the strike include wage increases and concerns over automation. The union is demanding a $5 hourly wage increase each year for the next six years, which would significantly raise workers’ pay. Additionally, the ILA insists on strict language to prevent the introduction of full or semi-automation at ports, fearing job losses in the long term. Negotiations between the two sides have stalled, with no face-to-face meetings since June.
In response to the strike, we at Allen Lund Company are closely monitoring the situation. Our team is taking proactive steps to mitigate potential disruptions to our customers’ supply chains. We are actively communicating with our network of carriers and exploring alternative routes and logistical solutions to ensure minimal delays. In the meantime, we recommend that our shippers consider rerouting to West Coast ports for more efficient handling. The ongoing strike underscores the importance of adaptability in logistics, and we remain committed to finding timely and effective solutions for our customers during this critical period.
*****
Visit us at the
IFPA Global Produce & Floral Show in Atlanta, GA
October 17-19, 2024
BOOTH C1921
Dockworkers at ports ranging from Maine to Texas have gone on strike today, causing major concern to the U.S. and international supply chain. This is the first strike from the International Longshoremen’s Association since 1977 and has paralyzed the labors of about 45,000 workers.
According to CNBC, between 43%-49% of all U.S. imports and monthly billions of dollars in trade move through the U.S. East Coast and Gulf ports.
In response to the labor disruptions, the USDA put out a statement saying it is taking action to monitor and address potential consumer impacts.
“Our analysis shows we should not expect significant changes to food prices or availability in the near term,” the statement indicates. “Thanks to the typically smooth movement through the ports of goods, and our strong domestic agricultural production, we do not expect shortages anytime in the near future for most items,” it adds.
Additionally, they assured that non-containerized bulk export shipments, including grains, would be unaffected by this strike. For meat and poultry items that are exported through East and Gulf Coast ports, available storage space and re-direction of products to alternative domestic and international markets can alleviate some of the pressure on farmers and food processors.
“We are keeping an eye on downstream impacts in the west, and we will continue to monitor and work with industry to respond to potential impacts. Our Administration supports collective bargaining as the best way for workers and employers to come to a fair agreement, and we encourage all parties to come to the bargaining table and negotiate in good faith—fairly and quickly,” the USDA says.
Experts have indicated that this strike, if lengthy, could have major costs for the U.S. economy, with millions of dollars lost daily, especially at major ports like New York/New Jersey.
For the moment, dockworkers have taken to the streets, manifesting there will be “no work without a fair contract.”
The affected ports include: Baltimore, Boston, Charleston, Hampton Roads, Houston, Jacksonville, Miami, Mobile, New Orleans, New York, Philadelphia, Savannah, Tampa and Wilmington. The ports in question are currently operated under a contract between the United States Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA).
Although the eight-day strike at ports in Los Angeles and Long Beach has ended, picking up and delivering loads to the terminals is still a mess and it could be for weeks.
It is not like the flexibility in trucking where a load can be diverted elsewhere due to a labor strike, weather factors or any number of other reasons.
Container terminals reopened Dec. 5 at both California ports as clerical workers in International Longshore and Warehouse Union Local 63 reached a tentative contract with operators and shipping lines, as the union sought limits on outsourcing. In L.A. about 700 striking harbor clerks were backed by thousands of longshoremen who honored their picket line.
About $8 billion was lost in the strike to the local economy.
While the strike has ended, the congestion has not.
The cold chain was maintained, but there were concerns about arrival conditions and the possibility of an increase in orders that could challenge capacity.
It has been report the impacts of the strike will be far greater than just eight days. In 2002 there was a 10-day strike. It took months the boats could get back in the right rotation. This could adversely affect, for example, imported fruit from Chile arriving at Long Beach.