With less than two weeks remaining before a threatened East Coast and Gulf Coast strike, stakeholders are raising the alarm, saying such a shutdown would be devastating for supply chains in the food and beverage industry.
The warnings—made through letter-writing campaigns, webinars, and media briefings—come as the International Longshoremen’s Association has threatened a coast-wide strike on Oct. 1 if a new contract is not put in place. Food shippers with global supply chains note a prolonged stoppage at any of the nation’s ports could ripple into broader impacts to the economy.
Shipping lines like CMA CGM are among the dozens of companies that are members of the United States Maritime Alliance, the employers’ association known as USMX that is responsible for negotiating a new contract with the ILA.
Fears of a stoppage alone have already been enough to spring food shippers into action.
On Tuesday, more than 100 trade groups sent a letter to President Joe Biden, urging the administration to help both parties get back to the table and quickly “negotiate a new deal or agree to continue negotiations while keeping the ports open and cargo flowing.” Food-related groups that signed off on the letter include the Agribusiness Council of Indiana, the Agriculture Transportation Coalition, American Soybean Association, Association of Food Industries, California Bean Shippers Association, California Walnut Commission, Distilled Spirits Council of the U.S., Global Cold Chain Alliance, Green Coffee Association, International Dairy Foods Association, International Fresh Produce Association, National Chicken Council, National Grain and Feed Association, National Milk Producers Federation, National Pork Producers Council, National Restaurant Association, Oregon Feed & Grain Association, and the USA Poultry & Egg Export Council.
“A strike at this point in time would have a devastating impact on the economy, especially as inflation is on the downward trend,” the letter said.
Furthermore, companies have been moving cargo into the U.S. early, as well as diverting it to other locations. As a result, West Coast ports like the Port of Long Beach and the Port of Los Angeles are seeing a surge in cargo volumes.
Ahead of a potential labor strike or shutdown on the opposite side of the country, West Coast ports have affirmed to shippers that they have the capacity to accommodate additional cargo.
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