Trade urges immediate government action to prevent US port disruptions

The US National Grain and Feed Association (NGFA), alongside 55 other industry groups, is urging the Biden administration to take swift action to prevent disruptions at key ports along the East and Gulf Coasts.

With the potential for a significant halt in operations looming due to unresolved labor negotiations, these organizations emphasize the urgent need for intervention to protect the agricultural supply chain and the broader economy.

In a letter ​​addressed to President Biden, the trade groups—including the American Feed Industry Association (AFIA) and other organizations representing farmers, ranchers, food manufacturers, and renewable fuel producers—highlighted the potentially severe consequences of delays.

NGFA president and CEO, Mike Seyfert, stressed the importance of keeping port operations running smoothly, especially as the US enters harvest season.

“As the harvest season gets underway, even the slightest delay in moving American products efficiently has a disruptive and harmful effect on our supply chain and economy,” Seyfert stated. “Keeping these ports open and operating at full capacity is critical to NGFA members and rural America.”

Threat of lockout or strike looms

An estimated 40% of US containerized agricultural exports pass through these vital East and Gulf Coast ports. However, the operations at these ports are at risk of disruption unless an agreement is reached between the International Longshoremen’s Association and the US Maritime Alliance.

With the current labor contract set to expire on September 30, and negotiations deadlocked over pay, the threat of a lockout or strike looms. The groups warn that if port operations are interrupted, the repercussions will be felt throughout the agricultural sector, potentially lowering farmgate prices and slowing or halting vital exports.

“If port operations are stopped,” the letter reads, “the impact on the ag supply chain will quickly reverberate throughout agriculture and not only slow or shut down operations, but also potentially lower farmgate prices.”

The organizations call on the administration to intervene before October 1 to avoid any detrimental impact on US agriculture and the economy.

To mitigate potential risks, US companies that rely on these seaports have already begun taking precautionary measures. According to Reuters, some have started importing goods early, rerouting shipments to the West Coast, or even utilizing costly air freight options to avoid the potential chaos that could follow a strike.