Assurance bolsters U.S. industry's reputation as a reliable supplier of pork and beef.
A potential port strike that would have put a significant portion of U.S. beef and pork exports at risk has been deterred after East and Gulf Coast port operators struck a deal with a dockworkers union Wednesday. The International Longshoremen’s Association (ILA) and U.S. Maritime Alliance (USMX) have reached a tentative agreement on all items for a new six-year Master Contract. The two sides agreed to continue to operate under the current contract until the union can meet with its full Wage Scale Committee and schedule a ratification vote, and USMX members can ratify the terms of the final contract.
“We are pleased to announce that ILA and USMX have reached a tentative agreement on a new six-year ILA-USMX Master Contract, subject to ratification, thus averting any work stoppage on Jan. 15, 2025,” the two sides said in a joint statement. “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.
“This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace,” the statement added.
Contract negotiations between maritime industry employers and longshoremen in the nation’s ports stretching from Maine to Texas broke down in mid-November over issues related to automation. The two sides had reached a tentative agreement on wages in early October and had temporarily extended the existing labor agreement, bringing an end to a three-day strike work stoppage. That contract extension was set to expire Jan. 15.
In a statement Wednesday evening, President Joe Biden commended the agreement, noting collective bargaining plays an important role in building a strong economy.
"Today’s tentative agreement between the International Longshoremen’s Association and the United States Maritime Alliance shows that labor and management can come together to benefit workers and their employers," Biden said. "I applaud the dockworkers’ union for delivering a strong contract. Their members kept our ports open during the pandemic, as we worked together to unsnarl global supply chains. Thank you to the carriers and port operators who play an essential role in our nation’s economy."
ILA president Harold Daggett credited a face-to-face meeting with President-elect Donald Trump as the chief reason ILA was able to win protections against automation for its 85,000 members and negotiate a tentative Master Contract agreement.
“President Trump clearly demonstrated his unwavering support for our ILA union and longshore workers with his statement ‘heard ’round the world’ backing our position to protect American longshore jobs against the ravages of automated terminals,” Daggett said. “President Trump’s bold stance helped prevent a second coast wide strike at ports from Maine to Texas that would have occurred on Jan. 15, 2024, if a tentative agreement was not reached.”
Details of the new tentative agreement will not be released to allow ILA rank-and-file-members and USMX members to review and approve the final document.
In a statement, U.S. Meat Export Federation president and chief executive officer Dan Halstrom said, "This tentative contract agreement is great news for red meat exporters and for all of U.S. agriculture. The assurance that there will be no work stoppage at East and Gulf Coast ports eliminates a cloud of uncertainty and bolsters the U.S. industry's reputation as a reliable supplier of pork, beef and lamb. On behalf of USMEF’s membership, I want to thank the ILA and USMX for reaching this agreement and ensuring the continued movement of cargo."
According to Halstrom, 45% of waterborne pork exports and 30% waterborne beef exports are shipped from either the Gulf or the East Coast ports. Shutting down the ports for just one week would result in more than $100 million losses for beef and pork exports.
Soy Transportation Coalition executive director Mike Steenhoek noted that although bulk soybean and grain export facilities along the Gulf and East Coast and Great Lakes use a variety of different arrangements for the workforce that loads ships, a strike at the Gulf and East Coast ports would have affected shipments of soybeans, soybean meal and other agricultural products that are exported via container. He added that since a strike would have significantly affected meat and egg exports, that, in turn, would have rippled out to soybean and grain farmers.
In 2023, 54 million MT of U.S. soybeans were exported by bulk, and 5.8 million MT were exported via containers, approximately half of which was exported via the East and Gulf coasts, according to U.S. Department of Agriculture data. Therefore, Steenhoek said, “We’re looking at approximately 5-6% of total soybean exports that would have been impacted by a strike on the East and Gulf coasts.”
Mike Seyfert, president and CEO of the National Grain & Feed Association (NGFA), applauded the agreement.
“Both sides should be commended for sitting down and working out a compromise that benefits the dockworkers and their employers alike, and we are hopeful that this deal will be ratified and made official quickly,” Seyfert said in a statement. “It is a relief that these vital ports will continue to operate and that shipping channels will remain open for U.S. agriculture. 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. Given current economic conditions, we simply cannot afford disruptions.”
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