U.S. agriculture officials are watching closely as contract talks between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance remain stalled. The two groups are debating issues related to port automation for East and Gulf Coast ports. Their existing labor agreement is due to expire on January 15, raising the possibility of another strike or work stoppage that could disrupt U.S. exports.
The ILA and the Maritime Alliance reached a tentative agreement on wages in early October, then agreed to extend the existing contract, ending a brief three-day work stoppage. However, negotiations have seen little progress since mid-November.
According to Dan Halstrom, President and CEO of the U.S. Meat Export Federation, this uncertainty is already affecting red meat exports. “We already have exporters diverting cargo, or planning to divert cargo. Ocean carriers are anticipating that, so we already have surcharges in place,” Halstrom said. He also warned that some ports might stop accepting refrigerated cargo—essential for meat shipments—if no agreement is in place before January 15.
The financial impact could be significant. “For every week of a potential shutdown, it would be a loss in excess of $100 million just on beef and pork exports,” Halstrom noted.
Beyond the immediate costs, U.S. exporters worry that another work stoppage could damage the nation’s reputation as a reliable supplier. Many U.S. meat shipments originate from the East Coast and serve customers in regions like the Caribbean, Central America, Europe, South America, and the Middle East. If supplies are interrupted or delayed, some foreign buyers might look to other countries, such as South American nations or Australia, for more dependable deliveries.
With the January 15 deadline quickly approaching, both exporters and buyers are hoping the ILA and the Maritime Alliance can reach a new agreement to prevent another costly and disruptive strike. The outcome could have a major impact on U.S. agriculture’s ability to continue shipping goods on schedule—and to maintain its status as a trusted source of meat and other products on the global market.
Sabrina Halvorson
National Correspondent / AgNet Media, Inc.
Sabrina Halvorson is an award-winning journalist, broadcaster, and public speaker who specializes in agriculture. She primarily reports on legislative issues and hosts The AgNet News Hour and The AgNet Weekly podcast. Sabrina is a native of California’s agriculture-rich Central Valley.