WASHINGTON — For the first time since 1977, dockworkers from Maine to Texas went on strike on Oct. 1 after the current labor contract expired.
The International Longshoremen’s Association (ILA), the union that represents about 45,000 people on the East and Gulf Coasts, started setting up picketing stations after work stoppage talks failed at the end of Sept. 30.
“We are prepared to fight as long as necessary, to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” said Harold Dagget, the leader of the ILA union in a statement.
United States Maritime Alliance (USMX) did not provide a new comment yet but updated its state of the negotiations on its website yesterday.
US Meat Export Federation (USMEF) Vice President for Economic Analysis Erin Borror warned it could impose a significant economic impact on the US meat industry.
In the first seven months of 2024, the East and Gulf Coast ports directly accounted for nearly $3 billion worth of US red meat exports — the equivalent of approximately $100 million worth of product weekly — according to USMEF.
“As we learned from the COVID shipping issues, when there is one disruption in the shipping or in the supply chain, there are ripple or domino effects,” Borror said. “And so, we really need to think about the impacts indirectly on all US red meat exports, which were valued at over $11 billion in the first seven months of the year.”
The shutdown occurs at a time of year when exports typically increase.
“Our production and exports kind of accelerate, typically in the fourth quarter, and especially with our seasonal increase in pork production and exports, we’re really looking at the need to be able to handle and accommodate more, including ahead of year-end holidays,” Borror noted. “And of course, we’re exporting a record large share of our production for pork, and we’re up over around 30% of pork production going to export when we include variety meats, and for beef about 14% of that beef and variety meats being exported, and again, necessary for the profitability of our industries.”
USMEF expects a shutdown at the ports to impact many smaller businesses that serve specific markets, such as the Caribbean or Central and South America, as well as a variety of meats like beef livers to Egypt. The latter relies heavily on routes out of Houston. These routes do not have economically viable shipping alternatives, explained USMEF.