News

West Coast port disruptions concern U.S. red meat exporters

A breakdown in labor talks has slowed port operations across the west coast.  On Friday work stoppages effectively closed the Port of Oakland and drastically reduced workflow elsewhere.  Dan Halstrom, president and CEO of the U.S. Meat Export Federation says the year-long contract dispute is a major concern for U.S. red meat exporters. “It’s the number one location for exporters to ship from key markets,” he says. “Chilled markets like Japan, Korea, and Taiwan will definitely be significantly impacted.”

Halstrom says shifting to other ports is possible but isn’t a long-term solution.  “When it comes to chilled cargo, be it beef or pork, one of the keys is to have your closest port of calls, which would be the West Coast,” he says. “We can switch some of this cargo to places like the Gulf and even the East Coast, but it’ll be at a disadvantage when it comes to shelf life and marketability of US products.”

He says the work stoppage could impact key Asian markets as food service continues to rebound post-COVID.  “Any kind of supply chain disruption from the West Coast would be very bad timing in terms of maximizing the value opportunity from North Asian markets,” he says. “I think the industry, especially the pork industry really needs value.  It’s been a bit of a struggle in the pork industry on the supply side and one of the best returns on investment is this chilled pork business.”

This was the first work stoppage since early April, but CNBC reports it has carried over into this week as the largest terminal in Long Beach remained closed for both day and night shifts Monday.

The Pacific Maritime Association, which represents the world’s leading cargo carriers, reports that the International Longshore and Warehouse Union staged additional actions that impacted operations at the Ports of Oakland, Tacoma, Seattle, and Hueneme. ILWU says it remains committed to negotiating a good agreement for works as contract talks continue. 

The audio used to write this story was provided by the U.S. Meat Export Federation.