ARLINGTON, VIRGINIA, US — A trifecta of potential disruptions to the US shipping infrastructure could have a devastating impact on American agriculture during this year’s harvest, the National Grain and Feed Association (NGFA) said in a letter to President Joe Biden.
The NGFA and nearly 200 other organizations and companies called for urgent action to avert a looming port labor strike, rail issues in Mexico and historically low water levels on the Mississippi River.
“Farmers across the country are harvesting their crops, and the last thing NFGA members or the agricultural community can afford right now is a breakdown in any part of our nation’s shipping network,” said Mike Seyfert, president and chief executive officer of the NGFA. “Unfortunately, there is a trifecta of trade trouble on the horizon, which left unaddressed, could create bottlenecks in the supply chain and potentially lower farmgate prices.”
Labor negotiations have stalled between the International Longshoremen’s Association and the United States Maritime Alliance. If unresolved by Sept. 30, there could be a strike or lockout. The NGFA said such actions could affect 40% of US containerized agricultural exports.
Of equal concerns are Mexican-imposed embargoes on US agricultural rail shipments to Mexico, the largest market for many US agricultural products. The groups asked officials to intervene to keep the borders open and rail cars moving.
Lastly, the groups called on the US Army Corps of Engineers to ensure deeper navigation channels in the lower Mississippi to address the low water levels.
“A substantial portion of US agriculture is experiencing lower commodities prices and financial strain, and these transportation issues are exacerbating the situation,” the letter said. “We ask your administration to urgently pursue all avenues to mitigate the supply chain challenges facing US agriculture.”