U.S. dairy welcomes end of port strike, urges quick contract negotiations

USA – The U.S. Dairy Export Council (USDEC) and the National Milk Producers Federation (NMPF) have expressed relief as the recent labor strike that disrupted operations at East and Gulf Coast ports has come to an end. 

Both organisations highlighted the urgent need for contract negotiations to reach a final resolution, ensuring long-term stability for U.S. dairy exporters.

“We are grateful to the Biden Administration for its important role in getting the parties to return to work and resume port operations,” Krysta Harden, president and CEO of USDEC said .

“This is a crucial step in ensuring that U.S. dairy products can continue to reach our international customers. We encourage both sides to continue their negotiations and reach a final agreement that protects the supply chain and strengthens the reliability of American exports.”

The three-day labor strike, which began on October 1 and involved 45,000 port workers from Maine to Texas, brought a halt to operations at 36 United States Maritime Alliance (USMX) terminals. 

Dockworkers from the International Longshoremen Association (ILA) initiated the strike due to a lack of progress in reaching a new six-year labor contract.

The strike had severe ripple effects on the U.S. dairy industry, which relies on East and Gulf Coast ports for US$1.7 billion in annual exports. 

The disruption caused delays in shipments and forced exporters to reroute products, adding time and costs to the supply chain. As a result, dairy exporters reported canceled sales and rising transportation costs.

Gregg Doud, president and CEO of NMPF, emphasized the need for a swift conclusion to the contract negotiations. 

“International customers of U.S. dairy products need certainty that their orders will arrive on time, and dairy producers can’t afford further disruptions,” he said.

The strike jeopardized an estimated $32 million in dairy exports per week, adding pressure on the industry to find alternatives. 

In 2023, U.S. dairy products exported through the affected ports amounted to 530,000 20-foot equivalent units, representing 21% of the country’s total dairy exports by volume. 

The U.S. dairy industry depends on the reliable flow of goods to maintain relationships with global customers, particularly with perishable products that require timely delivery.

“Global customers depend on the reliability of U.S. dairy products. Delays caused by this strike not only risk damaging those relationships but also severely impact perishable dairy products that require timely delivery,” Harden said . 

“The negotiating parties need to come together to find a resolution and ensure port operations resume as soon as possible.”

The International Dairy Foods Association (IDFA) also raised concerns about the strike’s negative impact on imports of essential dairy products, ingredients, packaging, and equipment. 

The U.S. imported over US$3.04 billion in dairy products through the impacted ports in 2023, including US$263 million in October alone. 

Michael Dykes, DVM, president and CEO of IDFA, warned that the strike would significantly disrupt the industry’s supply chain, adding unnecessary costs and delays.

“IDFA members have been rerouting or front-loading shipments since early September due to concerns that a strike might occur,” Dykes said. 

“Truck rates have begun to increase as companies stock inventory for the holiday season. IDFA estimates that for every day workers strike, it will take upwards of six days to clear any backlog. Therefore, a weeklong strike will take over one month to clear.”

While President Joe Biden’s administration has played a role in mediating the dispute, it has indicated support for collective bargaining and has refrained from using federal powers to intervene directly.

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