Port Strike Along East and Gulf Coasts Detrimental to Dairy Industry

Port Strike Along East and Gulf Coasts Detrimental to Dairy Industry

WASHINGTON, October 1, 2024-International Longshoremen Association (ILA/union) dockworkers began a strike at 36 United States Maritime Alliance (USMX) terminals along the East and Gulf Coast because they had not reached a new six-year labor contract.Michael Dykes, D.V.M., president and CEO of the International Dairy Foods Association (IDFA) issued the following statement:

"We urge the Biden Administration to take quick and decisive action to resolve this strike to avoid further negative impacts to the American economy. For IDFA members, the greatest impact of an East and Gulf coast port strike will be on imports. The industry relies on Eastern ports for imports of dairy, ingredients, packaging, and equipment. Last year, the United States imported over $3.04 billion in dairy through impacted East and Gulf coast ports, including $263 million in October alone. Meanwhile, over $1.27 billion in dairy products were exported through impacted Eastern ports, including $94 million in dairy that flowed through those ports in October 2023.

"IDFA members have been re-routing or front-loading shipments since early September due to concerns that a strike might occur, and truck rates have begun to increase as companies stock inventory for the holiday season. IDFA estimates that for every day that workers strike, it will take upwards of six days to clear any backlog; therefore, a week-long strike will take over one month to clear.

"The impacts of this disruption will continue to be exacerbated as the strike persists. Rerouting or halting shipments incurs significant expenses, and rising trucking rates affect even those not directly involved with ports. This strike will add unnecessary costs as well as strain to the supply chain."

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The International Dairy Foods Association (IDFA), Washington, D.C., represents the nation's dairy manufacturing and marketing industry, which supports more than 3.2 million jobs that generate $49 billion in direct wages and $794 billion in overall economic impact. IDFA's diverse membership ranges from multinational organizations to single-plant companies, from dairy companies and cooperatives to food retailers and suppliers, all on the cutting edge of innovation and sustainable business practices. Together, they represent most of the milk, cheese, ice cream, yogurt and cultured products, and dairy ingredients