Port strike will bring another hit to farmers, says former Trump official

Published On Sep 30, 2024, 6:00 AM

Workers at ports on the East and Gulf Coasts, represented by the International Longshoremen's Association, are threatening to strike if an agreement on wages and automation is not reached. This strike could severely disrupt the supply chain, particularly affecting U.S. agriculture, which is facing a significant economic downturn and anticipated losses in net income. A strike could cost the U.S. economy up to $5 billion a day, exacerbating the problems for farmers, who are already struggling with falling crop prices amid increasing production costs. There's a growing push from farmers for a supportive farm bill to address these issues.

Stock Forecasts

The potential strike at ports can lead to significant disruptions in supply chains, particularly affecting agricultural exports and, in turn, impacting agricultural stock prices due to lower market prices driven by excess inventory.

As the strike disrupts operations and increases supply chain costs, companies involved in agricultural commodities exchanges like CME Group may experience lower trading volumes and reduced profitability.

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A potential strike by workers at over 30 seaports from Texas to Maine could wreak supply chain havoc on U.S. impacting food supply, medicine, cars and auto parts.

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