After days of disruption at major East and Gulf Coast ports, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) announced that they have reached a tentative agreement, effectively ending the strike that began on Tuesday. The agreement, which extends the current labor contract until January 15, 2025, will allow both parties to return to the bargaining table and continue negotiations on unresolved issues.
The labor dispute had significant impacts on the agricultural industry, as the shutdown of key shipping ports occurred in the middle of harvest season, complicating the flow of U.S. farm products to domestic and international markets. With the ports reopening, industry stakeholders are breathing a sigh of relief.
“It is a relief that a tentative agreement has been reached and the ports will be open for business once again,” said Mike Seyfert, President and CEO of the National Grain and Feed Association (NGFA). “For U.S. farm products to flow smoothly to domestic and international markets, it is essential for all parts of the supply chain to be fully functioning. The shutdown of these vital shipping ports was already starting to create big problems for NGFA’s members and America’s farmers during harvest season.”
The disruption had the potential to create higher transportation costs for agricultural shippers and risked damaging critical customer relationships. The American Farm Bureau estimated that $1.4 billion a week in agricultural trade was at risk if the strike had continued.
Last week, NGFA spearheaded a letter signed by agricultural organizations and companies across the country, urging President Biden to help resolve the labor impasse and prevent further damage to the agricultural supply chain. The industry’s calls for action were driven by concerns that the strike could derail the timely delivery of products, including grains, feed, and other essential goods.
Now, as the ports resume normal operations, the focus shifts back to negotiations. Both the ILA and USMX will continue discussions over the coming months to find a long-term solution that addresses workers’ demands and ensures the continued smooth operation of U.S. shipping channels.
“For the sake of rural America, we hope that the parties involved will work diligently between now and January 15 to find a long-term agreement that works for both sides and keeps our shipping channels open,” added Seyfert.
