Rep. Jeff Van Drew, R-N.J., says attainable port strikes throughout America might actually ‘exacerbate’ provide chain issues on ‘The Night Edit.’
The strike by employees at ports from Texas to Maine will reportedly hammer U.S. farmers already coping with an financial downward spiral.
“We don’t need another hit right now. And this is definitely going to have an impact on agriculture,” Kip Tom, former United States ambassador to the United Nations Businesses for Meals and Agriculture through the Trump administration, informed FOX Enterprise.
Unionized dockworkers within the Worldwide Longshoremen’s Affiliation, which represents 45,000 members at East Coast and Gulf Coast ports, might go on strike starting Oct. 1 if an settlement is not reached by the top of Monday.
LONGSHOREMEN UNION’S DEMAND FOR TOTAL BAN ON AUTOMATION QUESTIONED AS PORT STRIKE LOOMS
The 2 sides to the labor dispute have been at an deadlock over points together with wages and automation at ports.
The Seamax Mystic container ship is proven close to the Port of New Orleans on March 3, 2022. (Luke Sharrett/Bloomberg by way of Getty Photos)
A strike would have a domino impact on container availability, storage, rail and truck cargo in addition to meals provide.
“They’re not going to process more chickens because they don’t have them sold or they don’t have a place for them to go. They’re a perishable item. We can get into beef, pork and dairy at the same time. So, it just backs up the entire supply chain. It comes back to the farmer,” Tom mentioned. “What happens is that the market prices go down because you get excess inventory coming on the marketplace.”
WHAT PRODUCTS WOULD BE DISRUPTED BY A PORT STRIKE?
An evaluation by J.P. Morgan estimated a strike would value the U.S. economic system as much as $5 billion per day.
Individually, over 300 farmers and ranchers are pushing for a farm invoice to handle an trade in decline. Internet earnings for U.S. agriculture is forecast to fall greater than 27% or $55.61 billion from 2022, in line with the U.S. Division of Agriculture. These stats had been highlighted in a letter to Senate and Home management in September and detailed by the American Farm Bureau Federation.
TAFT-HARTLEY ACT: WHY BIDEN COULD USE THIS LABOR LAW TO PREEMPT PORT STRIKE
Farmer Ken Haas rakes lately lower hay so it is going to dry earlier than it is bailed on Aug. 11, 2024, in Elizabeth, Unwell. (Scott Olson/Getty Photos)
“Since the beginning of the year, the harvest price of major crops traded on the Chicago Mercantile Exchange and the Intercontinental Exchange have fallen by an average of 21% while total production costs remain near record levels,” the group wrote.
Ticker Safety Final Change Change % CME CME GROUP INC. 218.30 -0.17
-0.08%
ICE INTERCONTINENTAL EXCHANGE INC. 158.64 +0.55
+0.35%
“We’re already at a point where we came from under the Trump administration, about [a] $32 billion trade surplus. And now we’re expecting a $42 billion deficit going into 2025. So, we’re already being hit with a lot of loss of exports from us and good food products,” Tom famous.
FOX Enterprise’ Eric Revell contributed to this report.
