Grocers are facing a double whammy of supply chain challenges this week from the destruction caused by Hurricane Helene and the East and Gulf Coast ports strike by the International Longshoremen’s Association.
On Tuesday, the ILA said it initiated a strike that has “shut down all ports from Maine to Texas.
The strike came after the union failed to reach an agreement on a new master contract with the United States Maritime Alliance. According to the union, “tens of thousands of ILA rank-and-file members began setting up picket lines at waterfront facilities up and down the Atlantic and Gulf Coasts.
The strike comes days after Hurricane Helene created a path of destruction in Southeastern states with a climbing death toll and significant damage to farms including cotton and pecan growers.
FMI – The Food Industry Association said in a Tuesday statement the strike compounds the damage from the hurricane.
“The strike on the East and Gulf Coasts by the International Longshoremen’s Association threatens to make the situation even more dire,” FMI President and CEO Leslie G. Sarasin said. “This action has already begun to jeopardize food supply chain operations, and the strike has the potential to disrupt the long-term stability of markets and commodities, namely pharmaceuticals, seafood, produce, meat, cheese, ingredients, and packaging.”
Sarasin said an extended strike would likely result in “dramatic increases in the cost and availability of goods, intensifying this inflationary environment.” Switching to alternative ports, she added, would not address the shutdown because of the freight costs and time it would take to bring products back to the East Coast.
Sarasin is urging the negotiating parties “to come to a swift resolution as we all focus on assisting these devastated communities.”