Labor disputes are putting U.S. exports in a jam after failed negotiations could trigger a strike at major East Coast and Gulf ports.
The rundown: Dockworkers represented by the International Longshoremen’s Association are poised to strike on Oct. 1 if a deal isn’t made with the United States Maritime Alliance, representing container companies.
The union has been working to increase wages for workers and get assurance their jobs won’t be replaced by automation. The Alliance also filed a complaint against ILA, claiming the union had repeatedly refused to bargain.
Farmers to get pinched: The strike could impact 41% of U.S. containerized port volumes. For agriculture, that would mean disruption to meat and poultry exports, as well as eggs and other livestock products. Grain producers would also see some indirect impacts due to livestock exports being affected.
That could mean reduced prices that producers receive for commodities due to lower export demand. Consumers could see higher prices for food and other agricultural imports.
Shipping scramble begins: Ag Secretary Tom Vilsack urged both parties to come to a deal to avert a strike. He said the USDA would figure out ways to lessen the blow to agriculture if a strike occurs. Other top Biden administration officials met with the worker and shipping representatives to develop a potential resolution.
In the meantime, companies have already begun rerouting some shipments to West Coast ports.
Global grievances: Transportation issues are not isolated to the U.S. The potential strike comes amid a “perfect storm” of shipping issues that has rattled the global supply chain. That has made international shipping costs higher and created backlogs that have forced companies to reroute transportation.
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Congress to EPA: What’s Your BEEF with Meat Packers?
The Environmental Protection Agency (EPA) is considering new regulations that take aim at meat and poultry processors.
And some members of Congress have a BEEF with the EPA’s proposals.
The proposed rules: In late January, the EPA released the details of its proposed “Clean Water Effluent Limitations Guidelines and Standards for the Meat and Poultry Products Point source category.”
Huh?
Basically, the EPA formally published its proposals to combat wastewater contaminants that come from slaughterhouses.
Okay… that makes more sense.
At the heart of the rules proposal is a concern from environmental groups about nitrogen and phosphorus pollutants that originate from slaughterhouses. In some cases, the wastewater goes directly into waterways. In other cases, the water goes to municipal wastewater treatment facilities.
But not everyone is on board with the EPA’s suggestions…
Congress responds: Last week, two U.S. representatives—Eric Burlison (MO) and Ron Estes (KS)—pushed back against the EPA and introduced the “Banning EPA’s Encroachment of Facilities (BEEF) Act.” If passed and signed by President Biden, the law would prohibit the EPA from finalizing, implementing, or enforcing the rule.
According to the lawmakers, the proposed rules place undue burden on small processors—costs that can be absorbed by larger companies.
Soundbite: “The… proposed regulation isn’t just an attack on family-run small businesses, it’s an attack on rural communities,” said Burlison. “These meat and poultry processors are the lifeblood of our communities. The BEEF Act… lets these hardworking Americans do what they do best, produce safe, affordable food for our families.”
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