Various ag groups are breathing a sigh of relief on Friday as the potential strike at East and Gulf Coast ports appears to have been averted, AgDay-TV reports.
The International Longshoremen’s Association union and the U.S. Maritime Alliance of ports and shipping companies announced yesterday they had reached a verbal agreement for a six-year contract.
The good news for agriculture is that the agreement was finalized ahead of the Jan. 15 deadline, averting a potential strike that could have disrupted major U.S. ports and cost U.S. farmers and ranchers an estimated $1.4 billion a week.
Among the organizations expressing their appreciation for the decision was the U.S. Meat Export Federation (USMEF).
“(We’re) very appreciative that the two sides were able to come together on a full contract and very appreciative of the of the fact that there will be no disruption and that we can continue to focus on the business,” said Dan Halstrom, president and CEO of USMEF. “As we all know, the business has been growing, and it has a lot of potential growth in the future.”
Soybean Industry Also Faced Potential Losses
A strike would likely have also impacted soybeans, soybean meal and other ag product exports. For example, in 2023 about 5.8 million metric tons of soybeans were shipped via containers, and half of it was through those ports.
Mike Steenhoek, executive director of the Soy Transportation Coalition, said while bulk exports would not have been impacted by a strike, containerized exports of soybeans and other agricultural products would have been.
“About 5% to 6% of total U.S. soybean exports occur via containers from those potentially impacted ports along the East Coast and along the Gulf Coast,” Steenhoek said.
The verbal agreement between the two sides must still be ratified by employers and the members of the International Longshoremen’s Association. Get the full details on this and other ag news today from AgDay.
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