Trade insiders say that dockworker strikes at ports on the US East Coast and Gulf Coast have disrupted beef imports, causing issues for restaurants and retailers increasingly dependent on beef for burgers due to limited domestic supply. The strikes have impacted the unloading of goods at ports from Maine to Texas, affecting a wide range of products from automobiles to containers filled with Guatemalan bananas and Italian wine. Besides beef, seafood imports and US chicken exports have also been disrupted.
Experts and food importers warn that even short-term interruptions in cargo operations can disturb the entire US food supply chain, potentially leading to food shortages, price increases, or both. Shipping data and Everstream Analytics indicate that over 50 container ships are currently docked or floating near dozens of East Coast and Gulf Coast ports, compared to only three ships before the strike.
Industry officials caution that if the strike continues for more than a week, it could have a cascading effect on the beef industry. The US is already experiencing a tight beef supply due to severe drought and high grain prices, which have forced ranchers to sell off cattle herds, leading to the lowest cattle numbers in decades. This reduction has driven beef prices up, increasing the influx of cheaper imported beef. According to US Department of Agriculture data, beef imports from Australia rose by 72% in July, with additional imports from New Zealand and Brazil.
To mitigate the strike’s impact, suppliers for US grocery stores and fast-food restaurants have boosted imports of frozen, lean beef, blending it with domestic supply to make burger meat. Dan Sorbello, who handles beef imports for Philadelphia and Houston ports, expedited container unloading before the strikes to ensure meat distribution. Meanwhile, Eric Buckner, Chief Commercial Officer at PanaPesca USA LLC, noted that the company stocked extra squid and shellfish before the strike, but some products remain on ships anchored offshore.
Analysts predict that prolonged strikes could lead to demurrage fees for beef importers, potentially passing the costs onto consumers. Fresh meat transport risks spoilage, affecting restaurant dishes like fajitas. Recent federal data shows that in August, ground beef prices reached a record high of $5.58 per pound.
