ARLINGTON, VA – Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) remain at a stalemate. Along with the looming deadline of September 30, indications are strong for a labor strike that could severely disrupt port operations along the East and Gulf coasts, particularly containerized exports.
Over the last several months, USA Rice, alongside other agricultural and industry groups, reached out to the White House on multiple occasions to seek intervention and resolution.
In an
agriculture-specific letter addressed to President Biden, USA Rice and 55 other organizations emphasized the critical importance of these ports to the agricultural sector. “Our members represent a broad collection of the agricultural and food supply chains that would be negatively impacted if the ILA and the United States Maritime Alliance are unable to reach an agreement before the labor agreement expires,” the letter states.
With approximately 40 percent of U.S. containerized exports moving through these ports, a disruption in port operations would ripple through the entire U.S. economy. While port operations for bulk shipments should not be impacted, halted container operations could potentially lower farmgate prices for producers and hamper exporters’ ability to get products in containers to overseas markets. Additionally, imports of goods necessary for production agriculture like crop inputs and equipment would be impacted at these ports.
“If port operations are stopped, the impact on the ag supply chain will quickly reverberate throughout agriculture,” the letter warns.
“With the stalled negotiations between the ILA and USMX, the need for governmental intervention has become increasingly pressing,” said Jamison Cruce, USA Rice vice president of government affairs. “USA Rice continues to call on the Biden administration to act swiftly to prevent a lockout or strike at East and Gulf Coast ports that could wreak havoc on U.S. agriculture and the economy as a whole.”
As the deadline approaches, the hope remains that dialogue will resume and lead to a swift resolution.