US seafood imports will be affected by the port strike

Longshoremen and U.S. port operators remained in confrontation on Wednesday as 14 major ports on the East Coast and Gulf of Mexico closed and rhetoric on both sides intensified.

According to the United States Maritime Alliance (USMX), which represents terminal operators and shipping companies, employs around 25,000 people International Dockers' Association (ILA), which took part in the strike, closed ports on the East Coast and the Gulf of Mexico.

“USMX launched this strike when it decided to hold on to foreign shipping companies that make billions of dollars in profits at United States ports, but not to compensate the American ILA longshoremen who do the work that makes them their wealth “ILA President Harold Daggett said in a statement posted on social media.

“We are prepared to fight as long as necessary, to stay away from the strike for as long as necessary, to get the wages and protections from automation that our ILA members deserve.”

Meanwhile, fruit, produce and imported seafood are likely to be the first shipments to go out of supply to consumers due to the strike.

“The first thing that will be affected is our fresh produce, fresh seafood. About $17 billion worth of fresh seafood comes through these ports,” said Danny Munch, an economist at the American Farm Bureau Federation. accordingly NBC Boston. “These are all very perishable products. You can’t just sit in a container forever.”

Up to 60 percent of seafood consumed in the United States is importedand much of it comes through the ports of Boston and New York, where fresh fish is quickly processed and shipped through nearby airports.

The ILA leadership denied responsibility for any cost increases to consumers caused by the strike.

“Shippers are driving away their customers, resulting in higher costs for American consumers. They are now charging $30,000 for a full container, a whopping sum increase from $6,000 per container a few weeks ago,” Daggett said.

“This is unprecedented and they are doubling their $30,000 fee by loading the same container from multiple shippers. They’re killing the customers.”

President Biden has confirmed this would not use the powers of the Taft-Hartley Actwhich allows a president to request a court-ordered 80-day pause on strike actions that threaten the health and safety of the country to force a return to work.

However, pressure on the president to intervene is likely to increase as a number of trade groups, including the National Association of Wholesalers and Distributors (NAW), National Retail Associationand the National Manufacturers Associationcalled on the President to end the strike, citing the likely economic damage it would cause, particularly to small and medium-sized businesses.

State officials estimated that around 100,000 shipping containers are currently stuck in New York City ports. About 36 cargo ships must remain anchored outside the city waiting for the strike to end so they can dock and unload.

The ILA's main demand for 77 percent wage increases over five years and a total ban on the use of automated cranes, gates and container transporters in the unloading and loading of cargo puts the union and port operators at odds.

The union base salary is around $81,000 a year, although some workers can earn more than $200,000 with plenty of overtime.

The union sees automation as an existential threat to this standard of living. Shippers and port operators say U.S. ports risk losing competitiveness as the global shipping industry adopts the technology.

Daggett said: “The ILA strongly opposes any form of automation – full or partial – that replaces jobs or historic work functions. We do not accept the loss of work and livelihood of our members due to automation. Our position is clear: the preservation of jobs and historical work functions is non-negotiable.”

In a presidential election year, the Biden administration tapped into organized labor interests and expressed support for the ILA.

“This country's longshoremen are putting their health and safety at risk to continue to weather the pandemic so we can get the goods we needed when Covid raged, and these workers will help communities recover from the hurricane's devastating impacts Helene to recover,” said U.S. Assistant Secretary of Labor Julie Su. “While these companies make billions and their CEOs bring in millions of dollars annually in compensation, they have refused to put an offer on the table that reflects workers’ sacrifice and contribution to their employer’s bottom line.”

Su said: “The parties must return to the negotiating table, and that must start with these giant shipping companies recognizing that if they can make record profits, their workers should share in this economic success.”

The potential damage from a prolonged strike raised alarm among U.S. industry groups, insisting that the Biden administration take stronger action to push the sides toward an agreement. The Associated Builders and Contractors said delays in loading would worsen builders' material costs.

“President Joe Biden must use his authority under the Taft-Hartley Act to restore operations at the ports and bring parties to the negotiating table so an agreement can be reached with the help of a federal mediator,” said ABC Legislation Vice President Kristen Swearingen and political affairs. “If the Biden-Harris administration is serious about rebuilding America – and maximizing hundreds of billions of dollars in tax investments in infrastructure, clean energy and manufacturing – the construction industry cannot afford further supply chain disruptions and additional costs.” to critical Materials.”

Republican members of Congress also called for action from the White House. House Infrastructure Committee Chairman Sam Graves, R-Mo., and Coast Guard and Maritime Transportation Subcommittee Chairman Daniel Webster, R-Fla., called on Biden to use executive authority “to end the strike at U.S. East and Gulf Coast ports.””

Biden administration officials said the president has “directed his supply chain disruption task force to meet every day and prepare to address potential disruptions as needed.” He has also directed his team to continue to engage intensively with workers, industry, State and local officials, shipping companies, and rail and trucking companies to work together. The government has already held dozens of meetings with industry about its plans, including several meetings with retailers, grocers, manufacturers and agriculture.”

USMX issued a statement saying it supports collective bargaining, claiming: “Our current offer of a nearly 50 percent wage increase exceeds all other recent union agreements, while combating inflation and recognizing the ILA's hard work to achieve this to keep the global economy going.”

In its response, the union said it “rejected its so-called 'nearly 50 percent wage increase' because it does not adequately address the demands of our members.”

The Teamsters pledged to respect union picket lines at the ports.

“The International Brotherhood of Teamsters, including our members in the freight industry, stands in full solidarity with the International Longshoremen's Association as it fights for a fair and equitable contract with the shipping companies represented by USMX,” Teamsters General President Sea O'Brien said in a statement on Tuesday.

“Shipping companies are striking against themselves after failing to negotiate a contract that recognizes the value of these workers. Our ILA brothers and sisters play a critical role in keeping America’s economy running, and they deserve industry-leading wages and robust job protections for the vital work they do.”

Some reporting on this story first appeared on SeafoodSource.com and is republished here with permission.