ILA strike and Hurricane Helene threaten the food supply chain

ILA strike and Hurricane Helene threaten the food supply chain

Grocers are facing a double supply chain challenge this week due to the destruction from Hurricane Helene and the International Longshoremen’s Association’s attacks on East and Gulf Coast ports.

On Tuesday, the The ILA said it had launched a strike that has “closed all ports from Maine to Texas.”

The strike came after the union failed to reach agreement on a new framework contract with the United States Maritime Alliance. According to the union, “Tens of thousands of rank-and-file ILA members began picketing port facilities along the Atlantic and Gulf coasts.”

The strike comes days later Hurricane Helene left a trail of destruction behind in southeastern states with a rising death toll and significant damage to agricultural businesses including cotton and pecan farmers.

FMI – The Food Industry Association said in a statement Tuesday: The impact worsens the hurricane’s damage.

“The International Longshoremen’s Association strike on the East and Gulf Coasts threatens to make the situation even worse,” said FMI President and CEO Leslie G. Sarasin. “This action has already begun to jeopardize the operations of the food supply chain, and the strike has the potential to disrupt the long-term stability of markets and goods, particularly pharmaceuticals, seafood, fruits and vegetables, meat, cheese, ingredients and packaging.”

Sarasin said an extended strike would likely lead to “dramatic increases in the cost and availability of goods, reinforcing this inflationary environment.” She added that switching to alternative ports would not be a solution to the closure due to freight costs and the time it would take to transport products back to the East Coast.

Sarasin calls on the negotiating parties to “come to a solution quickly as we are all focused on helping these devastated communities.”