Urgent Call from Agriculture Organizations

By P.J. Huffstutter, David Shepardson
CHICAGO/WASHINGTON (Reuters)

Nearly 200 agriculture organizations urged the White House to tackle U.S. agricultural supply chain problems due to a potential port strike on the East and Gulf Coasts starting Tuesday.

Imminent Disruptions

The groups are concerned about "imminent and severe shipping disruptions" from the possible work stoppage, rail line snarls, and historically low river levels affecting grain barge shipments and trade with Mexico.

Requests to Federal Government

• Dredging: They asked the U.S. Army Corps of Engineers to dredge the lower Mississippi River to maintain 12-foot-deep channels.
• Grain Rail Movement: A request was made to reopen grain movement by rail from the U.S. to Mexico.
• Emergency Waiver: The Transportation Department was prompted to consider an emergency hours of service waiver for truck drivers at East and Gulf Coast ports.

Context of Concerns

The letter highlights shipping disruptions stemming from a potential strike at ports handling about half of the country's ocean trade, including essential goods like coffee, meat, and eggs.

On Thursday, employers at U.S. East and Gulf Coast ports filed an unfair labor practice complaint against the union, indicating deadlock in labor negotiations as the six-year master contract between the United States Maritime Alliance (USMX) and the International Longshoremen's Association (ILA) is set to expire.

Broader Impact

Friday's message reflects mounting anxiety within the agricultural sector as U.S. farmers anticipate a record soy and corn harvest amid already substantial global supplies and low prices.

Organizations previously urged the Biden Administration to intervene to prevent damage to U.S. agriculture and the economy, stating that disruptions could have widespread repercussions across the country.

Low water conditions on key interior rivers have further complicated logistics, with some barges running aground on lower Mississippi, just as the grain export season begins.