USDA releases statement on East Coast and Gulf Coast ports strike

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USDA releases statement on East Coast and Gulf Coast ports strike

Dockworkers at ports ranging from Maine to Texas have gone on strike today, causing major concern to the U.S. and international supply chain. This is the first strike from the International Longshoremen’s Association since 1977 and has paralyzed the labors of about 45,000 workers. 

According to CNBC, between 43%-49% of all U.S. imports and monthly billions of dollars in trade move through the U.S. East Coast and Gulf ports.

In response to the labor disruptions, the USDA put out a statement saying it is taking action to monitor and address potential consumer impacts. 

"Our analysis shows we should not expect significant changes to food prices or availability in the near term," the statement indicates. "Thanks to the typically smooth movement through the ports of goods, and our strong domestic agricultural production, we do not expect shortages anytime in the near future for most items," it adds. 

Additionally, they assured that non-containerized bulk export shipments, including grains, would be unaffected by this strike. For meat and poultry items that are exported through East and Gulf Coast ports, available storage space and re-direction of products to alternative domestic and international markets can alleviate some of the pressure on farmers and food processors.

"We are keeping an eye on downstream impacts in the west, and we will continue to monitor and work with industry to respond to potential impacts. Our Administration supports collective bargaining as the best way for workers and employers to come to a fair agreement, and we encourage all parties to come to the bargaining table and negotiate in good faith—fairly and quickly,” the USDA says. 

Experts have indicated that this strike, if lengthy, could have major costs for the U.S. economy, with millions of dollars lost daily, especially at major ports like New York/New Jersey. 

For the moment, dockworkers have taken to the streets, manifesting there will be "no work without a fair contract."

ILA president, Harold J. Daggett joined thousands of fellow members outside the gates at Maher Terminal in Port Elizabeth, New Jersey, where he called for all ILA members to stay strong and united. 

“We are now demanding a $5 an hour increase in wages for each of the six years of a new ILA-USMX Master Contract,” he said. “Plus, we want absolute airtight language that there will be no automation or semi-automation, and we are demanding all Container Royalty monies go to the ILA.”

The ILA put out a release saying they intend for the demonstrations to continue round the clock, 24/7, for as long as it takes the United States Maritime Alliance (USMX) to meet the demands of ILA rank-and-file members.

Retail reacts

Additionally, the National Retail Federation (NRF) has also issued a statement from its President and Chief Executive Officer, Matthew Shay. 

“NRF urges President Biden to use any and all available authority and tools—including the use of the Taft-Hartley Act—to immediately restore operations at all impacted container ports, get the parties back to the negotiating table, and ensure there are no further disruptions,” he said.

Shay added that a disruption of this scale during this pivotal moment in the nation’s economic recovery will have devastating consequences for American workers, their families, and local communities.

“After more than two years of runaway inflationary pressures and in the midst of recovery from Hurricane Helene, this strike will result in further hardship for American families. The administration must prioritize our economy—and the millions of Americans who depend on it for their livelihood and wellbeing—and intervene immediately to prevent further hardship and deeper economic consequences," Shay said.

*This is a developing story

 

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