West coast labor disruption costs Idaho millions of dollars
Labor disruptions at west coast ports are damaging Idaho’s agricultural exporters. The Idaho Department of Agriculture said negotiations between the International Longshore and Warehouse Union and Pacific Maritime Association are creating numerous problems including congestion, slowdowns, and terminal closures.
The department said the dispute is hurting Idaho agriculture directly, resulting in lack of available equipment, increased costs, and lost sales.
“Exports are an essential part of Idaho’s economy,” said Celia Gould, Director, Idaho State Department of Agriculture, “and this disruption is a serious problem.”
The Idaho potato industry has suffered cancelled orders because customers cannot get product delivered. According to the department, some orders have sat at the port for a week and a half, only to be brought back to Idaho.
Idaho Potato Commission President and CEO Frank Muir said slowdowns at the ports are affecting previously signed contracts and price negotiations with new and current clients. “Container loads have been ordered and paid for,but are not reaching their destinations on time,” said Muir. “Shippers aren’t quoting new shipments because the cost of transportation is increasing on a daily basis and there is no assurance they can get a truck within a week or then find container space on a ship within a calculable time frame. The port issues could cause us to lose customers, in particular in Asia, to competition from Europe or Australia.”
The situation is also affecting Idaho’s livestock industry as well. Brad McDowell of Agri Beef Co. Said the dispute has reduced export volume by almost 70% and is costing millions of dollars. “Unfortunately this loss also means that we have had to cut back our operational hours impacting our people and their livelihoods,” he added. “Globally, our customers are questioning the reliability of American suppliers and that has opened the door to international beef competitors. McDowell believes the industry may never fully recover its export business.”
Gould said no part of the state is immune from the west coast disruption including Idaho’s fruit, hay, lumber, and pea and lentil industries.
