The Pacific Maritime Association announced that the Port of Seattle shut down due to the International Longshore and Warehouse Union (ILWU) refusing to dispatch labor to work at the container terminals. This is part of the ongoing labor strife on the US West Coast, which has seen continuous worker slowdowns and stoppages all week, causing trade worth an estimated $5.2 billion to be suspended at the Ports of Los Angeles, Long Beach, and Oakland. The Port of Seattle and its twin port, The Port of Tacoma, make up the Northwest Seaport Alliance (NWSA). The Port of Seattle is one of North America’s top maritime ports, relied upon by US agricultural exporters to ship their produce and grain. About 40% of Washington State’s jobs are tied to trade. The top trading partners of the US include China, Japan, Vietnam, South Korea, Taiwan, Thailand, Indonesia, Malaysia, the Philippines, and India in 2022.
The Agriculture Transportation Coalition (AgTC) represents ag shippers, telling CNBC that the ongoing disruptions are hurting the reputation of US ag exporters as a reliable trading partner. The executive director of AgTC, Peter Friedmann, stressed that the impact of these West Coast disruptions is felt worldwide. When the ILWU-PMA negotiations broke down during the previous contract, Japan’s Agriculture Ministry wrote to the US Department of Agriculture, stating that the ports were not working, but their cows were still eating. The top six US exports according to the port’s website include apples valued at $2.185 billion, milk valued at $1.209 billion, cattle valued at $801.5 million, wheat valued at $756.8 million, potatoes valued at $712.4 million, and hay valued at $601.7 million. The total value of exports in 2022 was $5.66 billion.
Impact on US Agriculture Exporters
The NWSA is the second-largest gateway for refrigerated containers, called “reefers,” in the country. Frozen products like french fries, meat, dairy, apple, and fish are transported in these specialized containers. Friedmann said that ag exporters cannot afford to have their products stored on terminals. They cannot continuously miss sailings and delivery commitments to overseas buyers. According to Friedmann, ag exporters, with very few exceptions, do not have the option to shift from West Coast gateways to the East and Gulf coasts, but he warned clients that foreign buyers do. These buyers are in Argentina, Brazil, Australia, and New Zealand, and the US cannot afford to lose these customers.
The NWSA is also a port importer of automobiles, with a terminal dedicated to Roll-On and Roll-Off vessels. Auto imports were up 6.5% in 2022 compared to 2021, with 172,979 units delivered. Kia and Hyundai automobiles use this gateway.
The West Coast ports’ ongoing labor strife is impacting US agriculture exporters, with the shutdown of the Port of Seattle causing further disruption. The NWSA is a crucial gateway for refrigerated containers, and ag exporters cannot afford to miss sailings and delivery commitments. The US cannot afford to lose foreign buyers to other countries like Argentina, Brazil, Australia, and New Zealand. The impact of these West Coast disruptions is felt worldwide and is hurting the reputation of US ag exporters as reliable trading partners.
Leave a Reply