On Oct. 1, 2024, thousands of dockworkers went on strike at dozens of East and Gulf Coast ports. This occurs as contract negotiations have broken down between the dockworkers’ union, the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) that represents the port employers. Regarding the impact on agriculture nationally, initial reports estimate that the strike could have a $1.4 billion impact on containerized agricultural exports and imports for each week it goes on. At the same time, the U.S. Department of Agriculture does not expect significant changes to food prices or availability for consumers in the near term.
Western Growers recognizes that this situation is uncertain and evolving, and that reverberating impacts to the West Coast ports and broader food supply chain are within the realm of possibility, especially if the strike lingers. This potentially includes:
- More demand for containers and berth space at West Coast ports, as ships and cargo originally intended for the East and Gulf Coast get rerouted.
- Union actions by West Coast dockworkers, as a show of support and solidarity with ILA members.
- Ocean shipping lines increasing costs through higher freight rates and/or new surcharges. A few of these companies have already announced new surcharges and general rate increases that will kick in later this month.
We encourage our members with ocean-faring business to begin (or continue) proactively coordinating with their brokers, carrier providers and truckers on potential contingency plans in the event of a prolonged strike and broader logistical impacts. We also recommend retaining any and all communication records discussing freight rates, quotes, and fees or surcharges, in case of any discrepancies or potentially unjustified adjustments. We will continue to closely monitor the situation and provide updates as they become available.
If you are experiencing any shipping issues or have questions about these events, please contact Tracey Chow, Federal Government Affairs Director, at [email protected].
Additional Resources:
Federal Maritime Commission – Complaints and Assistance
U.S. Department of Agriculture – Statement on East Coast and Gulf Coast Ports