West Coast ports are handling more cargo than normal, picking up some of the slack from the Longshoremen’s strike at East Coast and Gulf ports, according to various news services.
Plus, many importers and exporters made the switch in the weeks and months leading up to this week’s strike. The end result is that product shortages from the current strike are being delayed by prior planning.
NO NEW NEGOTIATIONS YET
Foodmarket reported that the United States Maritime Alliance, the entity representing the ports, had signaled it was ready to resume negotiations but without preconditions. Foodmarket quoted an update from the USMX that said reaching an agreement required negotiating, and the issues at stake were intertwined.
In addition, President Biden has expressed support for the Longshoremen and collective bargaining and so has rejected invoking the Taft-Hartley Act, which would require employees to return to work for an 80-day cooling-off period and to return to the bargaining table.
A Google search revealed that the expired contract said longshoremen receive $20 an hour starting pay, $24.75 after two years on the job and $31.90 after three years, topping out at $39 for those with at least six years of service.
The ILA wants $5 an hour more for each of the six years of the new master contract. And, they want strong assurances that there will be no automation of semi-automation.
RAILROADS DOING JUST FINE
Meanwhile, US railroads are doing just fine as shipments divert to West Coast ports and then are railed across the country to their final destinations, said Leal Sundet, the secretary treasurer of the International Longshore and Warehouse Union local representing workers in Portland, Ore., to Marketplace.
The transition to West Coast ports actually began months ago, Marketplace said. Volume so far was described as about what it is for a normal holiday season.
Foodmarket said a Union Pacific spokesman said in a letter to the Surface Transportation Board that it was “successfully navigating” the shifts in importer shipments. “In September alone, our year-over-year volumes are up over 40%.”
But the ports of Los Angeles and Long Beach, the largest US port complex, the increase was more significant. Long Beach side alone handled 913,000 containers last month, about 18% more than normal and a record in the 113-year history of the port, Marketplace said, quoting Mario Cordero, CEO of the Port of Long Beach.
And various news sources tell of lengthening ques of ships anchored off East Coast and Gulf ports waiting for the time when they can unload or load cargo. The backlog already in place could take weeks to clear, they said.
CATTLE, BEEF RECAP
The USDA reported formula and contract base prices for live FOB steers and heifers this week ranged from $184.70 per cwt to $188.29, compared with last week’s range of $182.95 to $185.78 per cwt. FOB dressed steers, and heifers went for $288.63 per cwt to $297.87, compared with $285.83 to $292.69.
The USDA choice cutout Thursday was down $0.01 per cwt at $299.80 while select was down $0.64 at $283.29. The choice/select spread widened to $16.51 from $15.88 with 118 loads of fabricated product and 28 loads of trimmings and grinds sold into the spot market.
The USDA-listed weighted average wholesale price for fresh 90% lean beef was $349.50 per cwt, and 50% beef was $73.00.
The USDA said basis bids for corn from feeders in the Southern Plains were unchanged at $1.28 to $1.40 a bushel over the Dec corn contract, which settled at $4.28 1/4 a bushel, down $0.04 1/4.
The CME Feeder Cattle Index for the seven days ended Wednesday was $248.25 per cwt, up $1.01. This compares with Thursday’s Oct contract settlement of $248.97, down $0.75.