A strike of 45,000 dockworkers across 36 ports in the East and Gulf Coasts sends detrimental shockwaves throughout the U.S. economy, with impacts set to hit American agriculture industries head-on.
“These East Coast and Gulf ports have accounted directly for nearly $3 billion worth of U.S. red meat exports in the first seven months of the year,” according to U.S. Meat Export Federation Vice President for Economic Analysis Erin Borror. “And so that equates to roughly $100 million or more worth of red meat exports per week going out of these ports. And 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. And so we really need to think about the impacts indirectly on all U.S. red meat exports, which were valued at over $11 billion in the first seven months of the year.”
Data from Kpler and MDS Transmodal shows 147 ocean vessels carrying an estimated $34 billion worth of freight was set to arrive to these ports by October 1st. Now, many of them have no place to go.
The triple-dozen shutdown includes five of the busiest ports in North America. So how does a six-year contract run out, causing the first strike of ILA members since 1977?
The ILA brought demands of sizable wage hikes and a complete ban of automated cranes, gates, and container-moving trucks when unloading or loading freight.
Under the previous contract, longshoremen earned a top rate of $39 an hour. The ILA asked for a $5-an-hour raise annually throughout the duration of the six-year contract, totaling a 77 percent increase.
The labor union and maritime association both accused each other of not bargaining fairly.
Just four days before the cutoff USMX filed a complaint with the National Labor Relations Board, accusing the union of “not bargaining in good faith.”
Meanwhile, Union spokesman Jim McNamara said in a statement the Maritime Alliance was refusing demands for a “fair and decent contract.”
A 112-day stalemate beginning on June 10th over an automated gate in Mobile, Alabama, ended when talks resumed late Monday evening.
The Maritime Alliance came back with a nearly 50 percent wage increase over the life of the contract, triple employer contributions to retirement plans, stronger healthcare options, and to keep current language that limits automation.
However no contract was settled upon, leaving cargo stranded in the ocean until an agreement can be met.
***As of 6:40am CST, dockworkers continued to strike. We will update and have more coverage as it becomes available.