What the East and Gulf Coast ports strike means for growers

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 increase 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.