Contract negotiations between West Coast longshoremen and container terminal operators faced a breakdown Friday as work stoppages effectively closed the Port of Oakland and slowed operations up and down the coast. USMEF President and CEO Dan Halstrom said the year-long contract dispute is a major concern for U.S. red meat exporters.
?The importance of the West Coast, especially for our chilled cargo going to Asia, is paramount,? Halstrom said. ?It’s the number one location for exporters to ship from. Key markets, chilled markets like Japan, Korea and Taiwan will definitely be significantly impacted. If it was strictly frozen product, at least short term, that the impact would be minimal. But when it comes to chilled cargo, be it beef or pork- especially pork with a shorter shelf life, one of the keys is to have your closest port of calls, which would be the West Coast. We can switch some of this cargo to places like the gulf and even the East Coast, but it’ll be much of a disadvantage when it comes to shelf life and marketability of U.S. products. So, shifting especially on a chilled side away from the West Coast is not a particularly good option.?
Halstrom said the post-COVID rebound in consumer demand in Asia is an opportunity the U.S. industry cannot afford to miss out on.
?Every forecast has the food service business rebounding, getting back to normal, giving us that extra push,? Halstrom said. ?So, 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. I think the industry, especially the pork industry, really needs this value. It’s 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 going into Asia. It’s also important for beef as well, so it?s paramount that we get this situation back to normal as soon as possible.?
This was the first significant work stoppage since Good Friday, when terminal operations at Southern California ports ceased for about 24 hours. However, media reports indicate this work stoppage is expected to continue into this week, with CNBC News reporting that Total Terminals International (TTI), the largest terminal at the Port of Long Beach, has announced that the terminal will be closed Monday for both the day and night shifts.
For more information, visit usmef.org.
