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Potential port shutdown threatens exports

If an agreement is not reached by Saturday – all major ports along the East Coast and Texas could shut down on Sunday.  Contract negotiations between the International Longshoreman’s Association and the US Maritime Alliance have been ongoing since last March.  Talks between the groups stalled in September and both sides agreed to a 90-day extension with a new expiration date of December 29, 2012. 

Joe Schuele, Communications Director for the US Meat Export Federation says if an agreement is not reached – it could create challenges for US meat exports.  “A lot of beef and pork goes out of the East and Gulf ports,” he says.  “A little more pork in terms of exports than beef.  But, because the Port of Houston is involved it is also a major issue for beef exports.”

AUDIO: Joe Schuele, USMEF, (4:36mp3)

Schuele tells Brownfield because exporters have known about the potential strike some product has been moved to the West Coast for shipment so it is difficult to measure exactly how big the impact could be.

“Just to give you an idea of the amount of tonnage we’re talking about – the Port of Houston alone, on the beef side, you’re looking at about 150,000 metric tons,” he says. 

Or roughly one fifth of the total of beef exported through September of this year.

And on the pork side, Schuele says, “Norfolk would be the largest, and you’re talking about more than 90,000 metric tons through the first three-quarters of the year.”

At this point, he says there have been some talks of another short-term extension and adds USMEF will continue to monitor the situation.