A port strike is now in place. Negotiations between the International Longshoremen’s Association Union, representing about 85,000 port workers, and the United States Maritime Alliance employer group, representing about 40 ocean carriers and terminal operators, failed to agree before the contract expired.
According to Oklahoma Wheat Commission Director Mike Schulte, Oklahoma grain shipments will likely be affected by a lengthy shoreman strike. Farm Director KC Sheperd featured his comments in this agricultural news update.
Oklahoma exports roughly 30 billion dollars in agricultural products through the east and gulf coast to Mexico, one of Oklahoma wheat’s biggest customers. The port strike throws a wrench in Oklahoma’s wheat producer’s plans to export to other countries. If the ports remain closed, the movement of grains into export markets will be halted.
Schulte stated, “Our hope is that we can get past this. It is important that these negotiations move forward so we don’t have to jump these hurdles when trying to market our crop. Oklahoma is 60 percent of our market share when we look at imports that exports play to the wheat industry.”
With a port strike affecting roughly $1.4 billion in agricultural exports weekly, some groups and farm leaders are calling on President Joe Biden and his administration to step in more aggressively to end the strike that has halted supply chains along the East Coast and Gulf of Mexico ports.
The International Longshoremen’s Association (ILA) walked off the jobs early Tuesday morning over wages and concerns about automation taking jobs. Carriers are represented by the United States Maritime Alliance (USMX). There is no indication that talks are restarting.
Schulte said, “Thirty-six East and Gulf Coast ports have shut down with 45,000 union workers having left the job.”
President Biden has said since Monday that he would not invoke the Taft-Hartley Act, which would require the administration to get a court order for an 80-day “cooling-off period” for negotiations to continue.
The American Farm Bureau Federation pegged that about $1.4 billion in agricultural exports pass through the East Coast and Gulf Coast ports controlled by the ILA.
Supply chain disruptions will cost billions if not resolved quickly.
