John DeCicco Jr., CEO of DeCicco & Sons, details the impact of the longshoremen's strike on his company as it prepares for fruit shortages.
The strike currently in progress is Unionized longshoremen The unloading of imported coffee has been suspended at Eastern and Gulf ports, tightening supplies for coffee drinkers in the United States, the world's largest coffee-drinking nation.
According to USDA data, Americans purchased approximately 164.2 billion 6-ounce cups of coffee from October 2022 to September 2023, equivalent to approximately 3.26 billion pounds of coffee. do. Analysis by USAFacts.
According to the report, the U.S. produced only 11.5 million pounds of coffee in Hawaii during the 2022-23 season, most of which was imported, meaning the U.S. produced about 282 times more coffee than it produced. This means that you have consumed .
Brazil (27%) and Colombia (19%) are the countries exporting the most coffee to the United States, according to a USDA report on the coffee market for the 2023-24 season. Because it is close to those countries, East Port and Bay Port is a major destination for American coffee imports.
US port strike: GM, Walmart, LG top importers in affected ports
Most of the coffee consumed in the United States is imported from abroad through the Eastern and Gulf Coast ports. (Photo by Robert Nickelsburg/Getty Images/Getty Images)
William “Bill” Murray, CEO of the National Coffee Association, told FOX Business: “The ports affected by this strike are critical to coffee and we are working with all parties to avoid further disruption. We ask everyone to work constructively,” he said in a statement.
“If we don't, two-thirds of Americans will suffer significantly.” drink coffee “Thank you to the 2.2 million hardworking people who work across America's coffee supply chain every day,” he added.
Longshoremen union demands to limit automation at U.S. ports could hurt competitiveness
Longshoremen from the International Longshoremen's Association are striking at Eastern and Gulf ports demanding higher wages and protection from automation. (Photo by Andrew Lichtenstein/Corbis via Getty Images / Getty Images)
According to Reuters, an anonymous coffee vendor from one of the largest coffee companies said, usa coffee importer“There are about 40 containers waiting to be moved,” said the official, who requested anonymity because he was not authorized to speak publicly about the matter.
“Container owners have already told us that they will charge extra if it takes longer than usual to return the boxes,” the trader added. He also said the strike could cause “supply tightness” in some parts of the United States.
Business groups urge Biden to intervene in port strike
The longshoremen's strike halted most activities at the Eastern and Gulf ports. (Mark Felix/AFP via Getty Images/Getty Images)
Strikes and supply disruptions occur due to US influence coffee stock Inventory levels are at historically low levels as importers are choosing not to maintain high inventory levels as a means of reducing storage costs due to high interest rates.
Coffee bean prices hit multi-year highs last week due to limited supply, but delays in the delivery of more coffee imports to U.S. roasters and coffee chains could lead to delays. costs rise It's even more important for businesses and consumers.
CLICK HERE TO GET FOX BUSINESS ON THE GO
“We source coffee from 35 countries,” Will Ford, director of operations for Arkansas-based Westrock Coffee Company, told Reuters. “If this is it [strike] If this continues for a long time, everyone will be affected. ”
Reuters contributed to this report.
