The threat of food and beverage shortages was averted earlier this month when a strike at 14 ports along the East and Gulf Coasts was tentatively settled after three days.
The strike by some 25,000 members of the International Longshoremen’s Association (ILA) working at ports from Boston to Houston, was the first such work stoppage in this major supply chain hub since 1977.
“Thousands of dockworkers at ports from New England to Texas went on strike just after midnight on Tuesday as they rally for higher pay and more job security,” reported CBS News on Oct. 2. “The ports affected by the strike handle roughly half of the country's ship cargo.”
With estimates that a one-week strike could cost the U.S. economy nearly $3.8 billion and increase the cost of consumer goods, it was announced on Oct. 4 that a tentative deal until Jan. 15, 2025 had been ironed out.
“The International Longshoremen's Association, the union representing striking U.S. dockworkers at East and Gulf Coast ports, reached a tentative deal Thursday to suspend its strike until Jan. 15 to negotiate a new contract,” CBS News reported. “Experts had warned that a prolonged strike could block the import and export of a number of products, including food, factory parts, and raw materials like wood and copper. Economists also worried that a long work stoppage could potentially drive up inflation and even lead to shortages of certain products.”
How the Ports Affect Food and Beverage Shipments
While ports were only closed 3 to 4 days, it still had an impact on the U.S. supply chain of food and beverage shipments.
"Each day that this goes on it creates a backlog of containers and ships," American Farm Bureau Federation economist Daniel Munch told CBS MoneyWatch. "A 3-to-5-day strike will take two weeks to clear."
CBS News reported that bananas, cherries and other fruits were among the more than 100 categories of food that depend on the East and Gulf Coast ports to come into the country.
“More than 75 percent of U.S. bananas arrive at ports handled by the International Longshoremen's Association, or ILA, according to the farm bureau. Beyond the perishable fruit, nearly 9 percent of imported cherries, 85 percent of canned foodstuffs, 82 percent of hot peppers and 80 percent of chocolate that arrive via waterborne vessels are offloaded from containers at these ports,” Munch told CBS.
The Farm Bureau also pointed out that 80 percent of imported beer, wine, whiskey, and scotch use these ports for entry as well as 60 percent of rum.
The U.S. is One of the World’s Largest Food Importers
Despite the U.S. heritage and role as a major producer and exporter of food products, the country is also one of the world’s largest food importers in today’s global economy.
A Visual Capitalist article says that “U.S. fruit and vegetable imports have been on a steady rise since 2000. In fact, between 2011 and 2021, fruits and nuts imports made up 44 percent of domestic consumption, while 35 percent of vegetables consumed in the U.S. came from outside the country.”
According to the graphic, the largest exporters of fruits and vegetables to the U.S. are North and South American countries, with Mexico the largest exporter and other products often coming from Guatemala, Chile, Peru, Costa Rica, and Brazil.
Here are the top 5 fruit and vegetables imported to the U.S. (including largest exporting country and U.S. import value for 2020):
- Tomatoes: Mexico ($2.5 billion)
- Avocados: Mexico ($2.1 billion)
- Peppers: Mexico ($1.48 billion)
- Bananas: Guatemala ($1 billion)
- Strawberries: Mexico ($897 million)
The top 5 meat imports to the U.S. (including largest exporting country and U.S. import value for 2020):
- Bovine Cuts: Canada ($1.4 billion)
- Bovine Cuts, Frozen: New Zealand ($839 million)
- Sheep Meat: Australia ($643 million)
- Swine Hams, Shoulders, and Cuts: Canada ($559 million)
- Bovine Cuts, Bone In: Mexico ($449 million)
The top 5 seafood imports to the U.S. (including largest exporting country and U.S. import value for 2020):
- Shrimp and Prawns, Frozen: India ($1.9 billion)
- Fish Fillet or Meat: Chile ($1.4 billion)
- Fish Fillet or Meat, Frozen: China ($884 million)
- Lobsters: Canada ($764 million)
- Crabs, Frozen: Canada ($719 million)
The top 5 other foods imports to the U.S. (including largest exporting country and U.S. import value for 2020):
- Canola Oil, Refined: Canada ($1.4 billion)
- Coffee, Not Roasted: Colombia ($1 billion)
- Cashews, Shelled: Vietnam ($960 million)
- Raw Sugar, Refined: Mexico ($723 million)
- Rice: Thailand ($713 million)
The amount and value of food imported to the U.S. highlights the diversity of consumer preferences and the importance of global food stocks, considering America is one of the world’s leading food producers,” the Visual Capitalist article concluded. “With countries having to rely on others to satisfy demand for limited production supply or exotic foods, the interconnectedness of the global food system is both vital and delicate.”
Food Retailers Prepped for Strike, Public Panic Buying
Food Retailers in the U.S. had notice of the possible port strike in advance, so preparations were made including stocking up on certain products.
The public, however, went into panic buying mode when the strike was announced, with some products flying off the shelves that were not even imported to the U.S.
“As the East and Gulf Coast ports strike continues for a third day on Thursday, consumer fears over product shortages have led to panic buying along the East Coast and Gulf Coasts, with shoppers buying up toilet paper and other household items, leaving barren shelves in their wake,” reported CNBC just before the strike was suspended.
“Keep Calm” was the word from the National Grocers Association.
“As port strikes are underway, independent grocers are actively collaborating with their wholesalers to secure alternative supply options and are efficiently managing their inventory to ensure minimal disruption to their customers,” the association told CNBC. “Products such as toilet paper and bottled water, along with so many other items on consumers’ shopping lists, are made in the U.S. and are not affected by the port strike. While some fresh produce items may become unavailable, they will be restocked quickly once the strike ends.”
CNN said the bottom line was that “relatively little damage was done, with the strike lasting only three days, especially since many shippers had rushed to move their goods through the ports ahead of the 12:01 am Tuesday start of the strike, a deadline that had been known for months.”
News organizations estimated that it would take 3 to 5 days to recover from any one day the ports were shut down so expect grocery stores and other food retailers to take upwards of two weeks to completely recover to normal supply levels.
