More than 50 container ships are currently anchored or circling off various East Coast and Gulf ports, marking a significant increase from just three ships on Sunday, prior to a labor strike. This information comes from shipping data provided by Reuters and Everstream Analytics.
“This situation is a nightmare for the supply chain,” said Jason Miller, interim chair of Michigan State University’s Department of Supply Chain Management. If the strike disrupts imports for more than a week, the beef sector could face severe repercussions, according to industry experts.
The US beef supply has already tightened due to a severe drought and high grain prices, prompting ranchers to sell off cattle. As a result, the national herd has shrunk to its lowest level in decades. This reduction has driven beef prices up significantly, while cheaper imports have surged. According to the US Department of Agriculture, beef imports from Australia have increased by 72% through July this year, with additional rises in imports from New Zealand and Brazil.
In anticipation of the strike, suppliers to US grocery stores and fast-food restaurants increased their imports of frozen lean beef, which is blended with domestic supplies for hamburger production, as reported by three industry sources.
Dan Sorbello, a beef importer at the Ports of Philadelphia and Houston, stated that he expedited container unloading before the strike to ensure timely access to the meat. “We’ve got maybe a week’s worth of lifeline,” Sorbello, principal of Sorbello Refrigerated Services, said.
PanaPesca USA LLC, a seafood importer and exporter, also prepared for the strike by stocking extra supplies of squid and shellfish. Chief Commercial Officer Eric Buckner noted that while much of their product has arrived in freezer freight containers, some remains stuck on ships currently anchored offshore.
If the strike continues beyond a week, it could lead to higher costs for fast food chains. Bob Chudy, a consultant for beef-importing companies, explained that fast-food restaurants that depend on affordable lean meat from abroad may have to switch to domestic options instead.
Requests for comments from McDonald’s and Burger King, owned by Restaurant Brands International, went unanswered.
Analysts warned that beef importers could incur demurrage fees if the strike continues, which could be passed on to consumers. Additionally, shipments of refrigerated fresh meat, used in dishes like fajitas, may spoil due to delays.
In August, US retail prices for ground beef hit a record high of $5.58 per pound, according to the latest federal data.
The US chicken industry also faces challenges from the strike, particularly as domestic demand declines. Matt Busardo, team lead for US poultry at commodity information firm Expana, noted that consumers are shifting toward colder-weather meals such as pot roast and chili instead of grilled chicken. The sector relies heavily on ports like Savannah to export leg quarters and drumsticks to countries like Angola and Cuba.
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