The labor contract between to two sides has been extended to January 15, 2025, which will enable all parties to return to the bargaining table to try to resolve their issues.
“Today’s tentative agreement on a record wage and an extension of the collective bargaining process represents critical progress towards a strong contract,” US president, Joe Biden said.
Mike Seyfert, the CEO of the National Grain and Feed Association (NGFA), commented:
“It is a relief that a tentative agreement has been reached and the ports will be open for business once again. For US 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.
“Left unresolved, this strike could have led to higher transportation costs for agricultural shippers and jeopardized valuable customer relationships. 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.”
Last week, NGFA spearheaded a letter that was signed by agricultural organizations and companies across the US, calling on Biden to help find a solution to the ongoing labor challenges.
JP Morgan analysts estimated the strikes would cost the US economy $5bn a day.
Feed industry impact
And the American Feed Industry Association (AFIA) cautioned that lengthy port closures could be worse than the Covid-19 pandemic for the US feed sector.
It warned that, if the dispute continued, the sector risked losing foreign customers and may be forced to cut jobs.
Any delays in receiving critical inputs—such as vitamins, minerals, amino acids, and micronutrients—would jeopardize animal health and increase costs for farmers and pet owners, added the AFIA.
According to the American Farm Bureau Federation, in 2023, grains, animal feed and hay accounted for 2.18 million metric tons, or more than 70%, of waterborne exports that ship from East and Gulf coast ports.
