Oct 3, 2024USDA: Ports labor dispute won’t immediately impact goods
The USDA does not expect an immediate impact on the movement of goods stemming from labor disputes at East Coast and Gulf Coast ports.
“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,” a statement released by the agency Oct 1. read in part.
Nearly 50,000 members of the International Longshoremen’s Association went on strike last week over concerns regarding automation and wages. Along with promises that the ports won’t introduce automation or semi-automation, the union also wants an $5-an-hour pay increase for each of the six years of the next contract — a 77% increase in total.
On Oct. 3, the strike was paused until Jan. 15.
The United States Maritime Alliance, or USMX, which represents the major shipping lines as well as terminal operators and port authorities, said Monday it had increased its offer to more than 50% over the proposed six-year contract.
“The Administration is taking action to monitor and address potential impacts on consumers due to labor disputes at East Coast and Gulf Coast ports. Our analysis shows we should not expect significant changes to food prices or availability in the near term,” the USDA statement said. “ … Likewise, 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.”
USDA said it is monitoring “downstream impacts in the west” and will continue to work with industry.
“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 statement said.