Traders and industry officials say striking longshoremen at East Coast and Gulf Coast ports are fighting for beef, which restaurants and retailers are increasingly relying on to make hamburgers because of limited domestic supplies. It is said to be blocking imports.
Labor strikes have prevented the loading and unloading of everything from car shipments to containers filled with Guatemalan bananas and Italian wine at dozens of ports from Maine to Texas. In addition to beef, seafood imports and U.S. chicken exports have also been suspended.
Even short-term shipment disruptions could disrupt the entire U.S. food supply chain, experts and food importers say. A prolonged strike could lead to shortages of some food products, price hikes, or both, they said.
More than 50 container ships were already anchored or roaming at dozens of ports on the East Coast and Gulf as of early Wednesday, according to Reuters shipping data and Everstream Analytics, but on Sunday before the attack. There were only three ships.
“From a supply chain perspective, this is a nightmare,” said Jason Miller, interim dean of Michigan State University's School of Supply Chain Management.
According to industry officials, if imports are delayed for more than a week due to the strike, it could also affect the beef industry.
Severe drought and high grain prices have tightened the supply of U.S. beef, causing ranchers to sell their cattle and shrink the nation's beef herd to its lowest level in decades.
Due to a decline in the number of cows, the price of American beef has soared, leading to a series of cheaper imports. Australian beef imports soared 72% through July this year, according to US Department of Agriculture data. Imports from New Zealand and Brazil also increased.
In anticipation of the strike, suppliers to U.S. grocery stores and fast-food restaurants have increased imports of frozen lean beef, which is mixed with domestic supplies to make meat for burgers, according to three industry officials. .
Dan Sorbello, who imports beef to the Ports of Philadelphia and Houston, said he removed containers from ships earlier than usual ahead of the strike to ensure the meat was available and distributed.
“We've got a lifeline for probably a week,” said Sorbello, president of Sorbello Refrigeration Services.
surf and lawn
Panapesca USA LLC, which imports and exports seafood, also stocked up on additional squid and shellfish to meet customer needs ahead of the strike, Chief Commercial Officer Eric Buckner said.
Much of Panapesca's product arrived in refrigerated cargo containers, but some is still on board the ship, which is currently anchored offshore.
Bob Tschudi, a consultant for beef importing companies, said costs for fast food restaurants could increase if the strike lasts more than a week.
“Suddenly, fast food chains that have relied on much more affordable red meat from overseas will have to rely on domestic alternatives,” Tschudi said.
McDonald's and Restaurant Brands International's Burger King did not respond to requests for comment.
If the strike continues, beef importers could be forced to pay demurrage fees, which could be passed on to consumers, analysts said. Raw meat, which can be used in fajitas and other restaurant dishes, is at risk of spoiling if it is shipped refrigerated.
U.S. retail ground meat prices reached a record high of $5.58 per pound in August, according to the latest available federal data.
Matt Busardo, team leader for U.S. poultry at commodity information firm Expana, said the strike is also premature for the export-dependent U.S. poultry industry.
He said domestic demand has declined as consumers turn to cold-weather meals like pot roast and chili instead of roasting chicken. The sector relies on ports such as Savannah to export leg quarters and drumsticks to countries such as Angola and Cuba.
