Multiple industries, including red meat exporters, are bracing for a potential work stoppage that could halt commerce at all container ports on the East and Gulf Coasts. The master contract between the International Longshoremen’s Association and the U.S. Maritime Alliance is set to expire Sept. 30, and currently the two sides are not even at the bargaining table.

While it is not unusual for longshore contract negotiations to extend beyond the expiration date of the current agreement, this situation is especially troubling because ILA leadership insists that its members will stop moving cargo Oct. 1 if a new agreement is not reached. On Sept. 5, delegates attending ILA wage scale meetings unanimously voted to authorize a strike.

Even more disconcerting is as this deadline fast approaches, USMX reports that it has been unable to secure a meeting with ILA to resume contract negotiations.

“We certainly don’t want to see a work stoppage, but it’s hard to be optimistic at this point,” said U.S. Meat Export Federation President and CEO Dan Halstrom. “These negotiations often take months to come to fruition and reaching an agreement before the end of the month is going to require a drastic turn of events.”

A strike on the East and Gulf Coasts will create formidable obstacles for U.S. pork exports, which are achieving great success in 2024. Through July, the U.S. industry exported 1.76 million metric tons (mt) of pork and pork variety meat, up 4% from a year ago. Export value was just under $5 billion – up 6% from a year ago, when exports set an annual value record of $8.16 billion. About 30% of total U.S. pork production – a record share – is being exported, with export value equating to more than $66 per hog slaughtered, also a record level.

Mexico, the leading destination for U.S. pork, and Canada (fifth largest) account for about 45% of this year’s export volume. These shipments travel almost exclusively by truck, but all other pork exports depend on ocean freight. While the three largest ports handling U.S. pork exports are on the West Coast, close to half (44%) of waterborne exports exited the country through East or Gulf Coast ports in the first half of 2024. According to PIERS data, six of the 10 largest ports for 2024 pork export volume would be halted by a strike:

“Some of our largest pork-producing states are east of the Mississippi River and would be especially hard-hit by a strike on the East and Gulf Coasts,” Halstrom said. “And even for pork that is typically exported through California, the disruption would be significant because these ports are bound to be heavily congested. Trucking capacity is also a major concern, as dozens of industries will be trying to move cargo over longer distances to reach the ports that are still operating.”

Pork shipments exiting the East and Gulf Coasts for Asia or Oceania must be frozen, because of the distance involved. But chilled pork can be moved through these ports to key markets in the Caribbean, Central America and Colombia. Re-routing any chilled pork through the West Coast and the Panama Canal would be problematic, and even redirecting frozen shipments would add considerable time and costs.

“The U.S. industry has developed some outstanding markets in Latin America, including the Dominican Republic, Honduras, Guatemala and Costa Rica, and of course Colombia is a mainstay destination for U.S. pork,” Halstrom said. “Years ago, these markets were primarily interested in pork for further processing. But now there is demand for center-of-the-plate cuts from both the retail and foodservice sectors. U.S. exporters have put tremendous effort into earning this business and a port strike would make it much more difficult to serve these customers.”   

Maintaining exports of pork variety meat – regardless of destination – is also a major industry concern. Variety meat export value has equated to more than $10 per head slaughtered this year, making a critical contribution to every U.S. hog harvested. These items have little value in the U.S. market, meaning international customers are critical. About 70% of pork variety meat exports are waterborne.

“U.S. agriculture, and in fact the entire U.S. economy, absolutely cannot afford the kind of disruption that’s looming if two of our three coasts shut down,” Halstrom said. “The U.S. pork industry is viewed as a consistent and reliable supplier by our global customers, a reputation that was recently challenged during COVID-related shipping delays. This impasse is threatening to put that reputation in jeopardy.”