How continued port strikes could raise costs for pet owners in the US
The feed industry warns of a significant supply chain disruption if the recently called-off strike by dock workers resumes again in January.
Port strikes on the East and Gulf Coasts, the coastline along the Southern US and the Gulf of Mexico, which threatened disruptions to the US animal food supply chain, were temporarily suspended in early October after a tentative agreement for a wage hike of around 62%.
The conflict between the International Longshoremen’s Association (ILA), a North American labor union representing longshore workers, and the United States Maritime Alliance (USMX), which negotiates labor contracts on behalf of shipping companies, may reignite as their current agreement expires on 15 January 2025.
“We will continue to monitor the negotiations in hopes that an amicable agreement is reached before another port shutdown should occur,” a spokesperson of the American Feed Industry Association (AFIA) tells GlobalPETS.
The body called on US President Joe Biden’s administration to intervene in the dispute.
Threat to the supply chain?
If strikes resume, the closure of these major ports will severely limit the flow of animal food exports and imports, leading to a significant economic downturn for the US feed and pet food industries.
AFIA highlights that prolonged disruptions could also threaten the shipment of essential ingredients such as vitamins, minerals, amino acids and packaging materials, driving up costs for farmers and pet owners.
Additionally, as 100% of vitamins are imported into the US, there may also be an animal welfare crisis, as vitamins are key to maintaining animal health.
AFIA President Constance Cullman said before the strikes were temporarily called off, “Where alternative ingredients or shipping routes can be found, animal food manufacturers will do their best to produce feed, pet food and treats.”
“Where alternatives do not exist, due to logjams at other ports or unavailable ingredient options, feed and pet food aisles may go bare should the strike be prolonged.”
Trade volumes
Data from the American Farm Bureau Federation suggests that in 2023, grain, animal feed and hay accounted for over 70% of waterborne exports shipping from the East and Gulf Coast ports.
The export value for feed, feed ingredients and pet food was estimated to be $13.4 billion (€12.3B) last year, while imports were worth $5.4 billion (€4.9B).
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