In a win for agricultural advocacy, a port strike at 36 containerized shipping and roll-on/roll-off terminals from Maine to Texas was called off Oct. 3 after just two days. For several months, the U.S. Maritime Alliance (USMX) and the International Longshoremen’s Association (ILA) had been at a stalemate while negotiating a new six-year contract for 80,000 unionized workers at the ports due to a continued dispute over wages, the implementation of automation and benefits. The two sides agreed to increase the ILA’s wages by nearly 62% with an agreement to extend their contract to Jan. 15, 2025, while negotiations continue.
“We hope the two parties can students come to agreement that benefits both. … and allows our supply chain to be more predictable, more reliable,” Mike Steenhoek, executive director of the Soy Transportation Coalition, told RFD-TV.
The ag impact: In 2023, 54 million metric tons of U.S. soybeans were exported by bulk and 5.8 million metric tons were exported via containers. Of that 5.8 million metric tons, approximately half was exported via the East and Gulf coasts. The other half was exported primarily via Los Angeles/Long Beach and other West Coast ports. Steenhoek estimated that about 5-6% of total U.S. soybean exports are shipped via the East and Gulf coasts.
The lingering effects of the strike situation disproportionately impact East Coast soybean states and those exporting specialty and food-grade soy via container. The region also exports several products such as poultry and pork that use soy. The American Soybean Association (ASA) anticipates disruptions in the import of farming inputs and farm equipment. Once operations resume, there will be significant backlogs to clear before normal operations can continue.
“We are pleased that U.S. soy exports in cargo containers won’t be further disrupted, and we look forward to the sides coming to a more formal agreement in the near future,” said Kim Nill, director of market development with the Minnesota Soybean Research & Promotion Council.
When the strike began on Oct. 1, the Minnesota Soybean Growers Association joined ASA and more than 200 organizations in signing onto a letter urging the Biden administration to intervene.
ASA had sent several letters to the Biden administration (which MSGA signed onto) urging intervention and highlighting the importance of a functioning supply chain for the agriculture industry at large. Additionally, ASA continues communicating the industry impacts to key congressional committees that focus on infrastructure and labor issues.
During an Oct. 8-10 visit to Washington, D.C., MSGA Executive Director Joe Smentek visited with congressional aides about the need to continue strengthening supply chains and diversifying markets and transportation routes, including increasing Minnesota soybean exports via the Port of Duluth-Superior.
