Potential Port Strike Could Significantly Impact U.S. Ag Exports

Munch: The International Longshoremen’s Association represents about 85,000 port workers, and they're threatening to go on strike against the United States Maritime Alliance, which represents about 40 ocean carriers and terminal operators. Both parties are in a contract, which ends September 30, and the union is demanding wage increases, better benefits, and protections against automation.

Munch: Waterborne exports are vital to U.S. farmers. They make up over 75 percent of total U.S. ag export volume. The potential strike that we're looking at would mainly disrupt containerized agricultural exports, which account for 30 percent of U.S. waterborne ag exports by volume. The remaining 70 percent, often grains and oilseeds, are shipped via bulk carriers, which are usually managed by independent workforces and will not be affected by the strike.

Munch: The disruption to overall ag trade is expected to be about $1.4 billion each week that a strike is in place. When we think about what commodities are at risk, nearly 80 percent of waterborne exports of poultry leave East Coast ports, 56 percent of raw cotton, 36 percent of red meat, 30 percent of dairy products, and even six percent of soybeans, all go through those ports through containerized exports. Not having an outlet to move those goods will create supply surpluses domestically and reduce prices for farmers.