Ag Leaders Applaud Deal Averting Port Strike

Tentative agreement between shippers and dockworkers prevents East and Gulf Coast container facilities from shutting down.

The International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) tentatively agreed to a new contract last week, averting a strike at East and Gulf coast ports. The two sides had been engaged in extended negotiations for the past three months following a brief dockworker strike in October.

The contract, which still must be ratified, is binding for six years. More than 25,000 dockworkers at container and roll-on/roll-off facilities were prepared to strike as soon as January 15 if a deal had not been reached.

In a January 8 joint statement, ILA and USMX officials called the deal a “win-win” agreement that creates more dockworker jobs and supports American consumers and businesses.

“This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coast ports – making them safer and more efficient and creating the capacity they need to keep our supply chains strong,” officials from the two organizations said.

Details of the agreement will not be released pending review and approval from both sides. Until the deal is finalized, the ILA and USMX will continue operating under their current contract.

Mike Steenhoek of the Soy Transportation Coalition says his group sincerely appreciates the long-term agreement. Though the Coalition did not pick sides in the dispute, he says having a reliable system of ports is “clearly in the best interest” of farmers.

Any potential strike would have impacted goods shipped via containers. In that scenario, between 5-6% of soybean exports could have been impacted.

National Grain and Feed Association President Mike Seyfert says both sides should be commended for sitting down and working out a compromise that benefits both dockworkers and employers. He says the NFGA remains hopeful that the deal will be ratified and made official quickly. According to him, producers simply can’t afford any disruptions given the current economic conditions.

“It is a relief that these vital ports will continue to operate and that shipping channels will remain open for U.S. agriculture,” Seyfert says. “America’s grain and feed industry depends on a fully functioning transportation system, and when any part fails, it can drive up transportation costs and jeopardize valuable customer relationships.”

U.S. Meat Export Foundation President Dan Halstrom notes any disruption to the supply chain is a problem, but a shutdown of East and Gulf ports would have been particularly problematic. Approximately 45% of waterborne pork exports and 30% of beef exports are shipped through those facilities. That figure includes a sizable portion of higher value chilled exports on the beef side.

Halstrom says the tentative agreement is great news for red meat exporters and all of agriculture. He adds that the assurance of no work stoppage eliminates a cloud of uncertainty and bolsters the U.S. industry’s reputation as a reliable supplier of pork, beef and lamb.

EDITOR’S TAKE:

What a relief! No one wanted to experience a protracted strike by dock workers. When we originally reported on this story back in October of last year, we pointed out the serious concerns and the devastating impact such a strike would have on agriculture and other industries like automobiles, etc. As you can tell from the ag community’s reaction to the news of a new agreement, they are thrilled that such a shutdown has been averted and everything should remain copesetic for the next several years. This calls for a celebration – what about a pre-spring planting or calving season oil change special? I trust you have other unique offers that would attract farmers/ranchers into your dealership. Once they are there, be sure to show them your inventory of new and AgPack® qualified trucks and SUV’s!