Just after midnight on Tuesday, Oct. 1, 45,000 port workers from Maine to Texas went on strike, preventing the unloading of goods at 36 United States Maritime Alliance (USMX) terminals along the East and Gulf Coast.
The International Longshoremen Association (ILA/union) dockworkers launched the strike because they had not reached a new six-year labor contract.
In a statement, the USDA said, “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.”
Non-containerized bulk export shipments, including grains, are unaffected by the strike. Meat and poultry items are expected to utilize available storage or be redirected to alternative domestic and international markets.
Yet, dairy organizations are concerned this disruption could have a devastating impact on American dairy farmers and exporters.
The strike directly jeopardizes $32 million in dairy exports per week, with additional indirect consequences looming as exporters are forced to reroute shipments and face rising transportation costs.
In 2023, over 530,000 20-foot equivalent units of dairy products, valued at $1.7 billion, were shipped through East and Gulf ports, accounting for 21% of total U.S. dairy exports by volume.
“Global customers depend on the reliability of U.S. dairy products,” said Krysta Harden, president and CEO of the U.S. Dairy Export Council (USDEC). “Delays caused by this strike not only risk damaging those relationships but also severely impact perishable dairy products that require timely delivery. The negotiating parties need to come together to find a resolution and ensure port operations resume as soon as possible.”
The International Dairy Foods Association (IDFA) is concerned about the strike’s negative impact on imports of dairy, ingredients, packaging and equipment.
Last year, the U.S. imported over $3.04 billion in dairy through impacted East and Gulf coast ports, including $263 million in October alone.
Michael Dykes, DVM, president and CEO of the IDFA, said, “IDFA members have been rerouting or front-loading shipments since early September due to concerns that a strike might occur, and truck rates have begun to increase as companies stock inventory for the holiday season. IDFA estimates that for every day that workers strike, it will take upwards of six days to clear any backlog; therefore, a weeklong strike will take over one month to clear.
“This strike will add unnecessary costs as well as strain to the supply chain,” he said.
IDFA, USDEC and the National Milk Producers Federation (NMPF) have called on President Joe Biden to intervene, but the Biden administration said it supports collective bargaining and will not use federal powers to halt the strike.
