Dockworkers reach tentative agreement
October 10, 2024 | Jeff Hutton
It’s good news, at least temporarily, as the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) have reached a temporary agreement to end a strike that had hampered shipments of soybeans, commodities and other goods along the East and Gulf coast ports.
Late last week, the ILA and USMX announced they had reached an agreement on wages while extending the current contract until Jan. 15, 2025. Both sides say this extension will allow for a return to the bargaining table to negotiate all other outstanding issues.
“Given how the negative consequences of a port strike would increase with compounding severity, it is welcome news that operations along our East and Gulf coast ports will immediately resume,” says Mike Steenhoek, executive director of the Soy Transportation Coalition (STC). “It is never a good time to have a port strike. It was particularly an unfortunate time given our nation’s current economic challenges and the “all hands-on deck” need to respond to the devastation of Hurricane Helene and now Hurricane Milton.
Potential impact
The export of soybeans and other ag products were in jeopardy of reaching their destinations after thousands of dockworkers along the East and Gulf Coasts hit the picket lines back on Oct. 1.
Besides wages, the ILA was at odds with the USMX over a ban on the automation of cranes, gates and container movements that are used in the loading or unloading of freight at 36 different U.S. ports.
While bulk exports of soybeans and other agricultural products were not directly compromised by the strike, containerized cargo was impacted for the three days the strike occurred, Steenhoek says.
According to the U.S. Department of Agriculture (USDA), in 2023, 5.8 million metric tons of soybeans were exported via containers.
Of that 5.8 million metric tons, nearly half of that was exported via the East and Gulf coasts. The other half was primarily exported via Los Angeles/Long Beach and other West Coast ports.
“Therefore, we were looking at approximately 5-6% of total soybean exports that could have been impacted by a strike on the East and Gulf coasts,” says Steenhoek.
But for now, the STC says soybean producers can exhale a bit.
“Of all the occupations in the world, farmers are among those who experience the highest degree of unpredictability and uncertainty. Despite these challenges, farmers show a remarkable ability to provide food predictably and reliably for U.S. and international customers,” says Steenhoek. “It is therefore reasonable to insist that port workers and port operators provide a similar degree of reliability to agriculture and the many industries that depend upon them. We sincerely hope a lasting agreement can be achieved by Jan. 15 that benefits both parties. We continue to not pick sides between the ILA and the USMX, but we most certainly are on the side of the American farmer. Having a reliable system of ports is clearly in the best interest of the American farmer.”
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