U.S. agriculture is bracing for a potential work stoppage at East and Gulf Coast ports that could greatly disrupt American red meat exports. Contract negotiations between the International Longshoremen’s Association and the U.S. Maritime Alliance broke down in mid-November over issues related to automation and have shown little progress over the past month.
The two sides reached a tentative agreement on wages in early October and temporarily extended the existing labor agreement. However, the contract extension will expire on January 15.
The U.S. Meat Export Federation says the uncertainty is already impacting red meat exports. USMEF President Dan Halstrom says ocean carriers are announcing surcharges related to a potential strike, and exporters are forced to look, where possible, to divert shipments to other ports.
Approximately 45 percent of waterborne U.S. pork exports ship out of the East and Gulf Coast ports, and on the beef side, that total is 30 percent.
USMEF, NAFB news service
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