Agriculture Groups Urge White House to Prevent East Coast Port Disruption, According to Reuters

By David Shepardson and Jarrett Renshaw

Washington – Agriculture organizations are calling on the White House to take action to prevent a potential strike that could begin on October 1 at U.S. East and Gulf Coast ports, which handle approximately half of the nation’s ocean imports.

Numerous groups, including the American Farm Bureau Federation, the Renewable Fuels Association, and the American Chemistry Council, have indicated that it is critical for the U.S. government to step in and ensure that port operations continue to avoid detrimental impacts on agriculture and the broader economy.

Senator Ted Cruz expressed concerns regarding the repercussions of a work stoppage, noting that the U.S. is "teetering on the brink of the first union strike among East and Gulf Coast ports since 1977." He referenced a JPMorgan analysis which estimated that a port strike could financially burden the U.S. economy by up to $5 billion each day.

Discussions between the International Longshoremen’s Association union and the United States Maritime Alliance (USMX) have reportedly reached an impasse over wage-related issues as the September 30 contract expiration date approaches.

The White House has yet to issue a comment on the request made by the agriculture groups. However, White House spokesperson Robyn Patterson mentioned on Tuesday that officials are closely monitoring the situation and evaluating potential measures to mitigate impacts on U.S. supply chains related to port operations, should the need arise. She also emphasized the importance of continued negotiations towards an agreement that benefits all parties involved and prevents any disruptions.

The Biden administration has indicated that President Biden does not plan to invoke the Taft-Hartley Act, a federal law that could be used to stave off a strike.

A threatened work stoppage involving 45,000 workers represented by the ILA at approximately 36 affected ports, including those in New York, New Jersey, Houston, and Savannah, Georgia, could lead to significant delays and increased costs throughout U.S. supply chains.

The agriculture groups noted that around 40% of U.S. containerized agricultural exports transit through the East and Gulf Coast ports.