Agriculture Organizations Urge Action on Supply Chain Issues

By P.J. Huffstutter, David Shepardson

CHICAGO/WASHINGTON (Reuters) – Nearly 200 agriculture organizations on Friday morning urged the White House to address key U.S. agricultural supply chain issues amid a potential port strike on the East and Gulf Coasts, set to begin Tuesday.

The groups warned of “imminent and severe shipping disruptions” from a potential work stoppage, congested rail lines, and historically low river levels backing up grain barge shipments, which could impact trade with Mexico. This information was contained in a letter reviewed by Reuters.

The organizations requested federal intervention to direct the U.S. Army Corps of Engineers to dredge the lower Mississippi River to maintain 12-foot-deep channels and to reopen rail transport of grain from the U.S. to Mexico.

Additionally, they urged the Transportation Department to consider an emergency hours of service waiver for truck drivers at East and Gulf Coast ports.

The letter, representing a broad spectrum of the national food and farm supply chain, noted that disruptions are already occurring ahead of an impending strike at ports handling nearly half of U.S. ocean trade, including essential goods like coffee, meat, and eggs.

On Thursday, employers negotiating a labor contract at these ports filed an unfair labor practice complaint against the union, accusing them of refusing to resume negotiations before the threatened strike.

The United States Maritime Alliance (USMX) filed this complaint with the National Labor Relations Board, following the International Longshoremen’s Association’s repeated refusal to return to talks. The existing six-year master contract between USMX and the ILA expires Monday, with the two sides in a deadlock over wage issues.

The letter highlights rising concerns in the agricultural sector as U.S. farmers start harvesting expected record soy and corn crops while global supplies are plentiful, keeping prices near four-year lows.

Just two days prior, similar organizations had urged the Biden Administration to take action to prevent the labor strike and mitigate potential damage to U.S. agriculture and the economy.

The letter warned that, “These disruptions will have a ripple effect across the entire United States” unless government action is taken. The White House did not immediately respond.

Additionally, low water levels on interior rivers have caused barges to run aground along crucial stretches of the lower Mississippi River, forcing them to carry lighter loads as the busiest U.S. grain export season begins.