A dockworkers strike at ports along the U.S. East and Gulf Coasts is creating significant delays in importing beef and seafood, raising alarms about potential shortages and rising prices.
The strike, which halts all operations, is preventing not only the shipment of food but also other products, including automobiles and containers filled with Guatemalan bananas and Italian wine. This situation affects numerous ports stretching from Maine to Texas.
Experts Warn of Food Supply Disruptions, Rising Prices Amid Dockworkers' Strike
Experts and food importers warn that even short delays in shipments can complicate the larger U.S. food supply chain. If the strike continues for a long period, it could lead to shortages of certain food items, price hikes, or possibly both.
As of early Wednesday (October 3), over 50 container ships were reported anchored or loitering off various East Coast and Gulf ports. This number is a sharp increase from just three ships on Sunday before the strike began, according to shipping data from Reuters and Everstream Analytics.
"From a supply chain perspective, this situation is quite troubling," stated Jason Miller, interim chair of Michigan State University's Department of Supply Chain Management. Industry members say the beef sector could face significant ripple effects if the strike hinders imports for more than a week.
This situation comes at a time when U.S. beef supplies are already limited due to a severe drought and rising grain prices. Ranchers have had to sell off cattle, resulting in the nation's herd dropping to its lowest level in decades.
The decrease in cattle numbers has caused beef prices to soar in the U.S., leading to an increase in imports. The U.S. Department of Agriculture reported a 72% rise in beef imports from Australia through July of this year, with notable increases in imports from New Zealand and Brazil as well.
As the strike continues, suppliers to American grocery stores and fast-food chains are increasing their imports of frozen lean beef, which is mixed with local supplies to create hamburger meat.
Dan Sorbello, an importer of beef at the Ports of Philadelphia and Houston, explained that he expedited the unloading of containers before the strike began to secure the meat and manage its distribution effectively.
Seafood, Meat Supply Chains Strained by Dockworkers' Strike
Similarly, PanaPesca USA LLC, a seafood import and export company, has increased its inventory of squid and shellfish to meet customer demands during the strike, said NY Post.
Chief Commercial Officer Eric Buckner noted that while many of their products in freezer freight containers have arrived, some remain stranded on ships anchored offshore.
Bob Chudy, a consultant for beef-importing companies, expressed concerns that if the strike persists for more than a week, fast-food restaurants may face increased costs. He noted that additional fees from delayed shipments could eventually be passed on to consumers.
There is also a risk that shipments of refrigerated fresh meat, commonly used in dishes like fajitas, may spoil if not delivered promptly.
The situation is particularly challenging for the U.S. chicken industry, which relies heavily on exports. Matt Busardo, team lead for U.S. poultry at commodity information firm Expana, pointed out that the timing is unfortunate.
As consumers shift towards colder weather meals like pot roast and chili, domestic demand is declining. The industry heavily depends on ports like Savannah for exporting chicken leg quarters and drumsticks to countries such as Angola and Cuba.
In August, ground beef prices in the U.S. reached an all-time high of $5.58 per pound, according to the latest federal data. As the dockworkers' strike continues to affect the import of crucial food items, consumers may face challenges in finding affordable beef and seafood in the coming weeks.
