Late last night negotiators representing West Coast dockworkers reached an agreement that will most likely end a longstanding labor dispute that has crippled seaport transportation on the West Coast. You can read more on the story here from AP.
The docks that serve as hubs for international trade have been blocked up because of this labor dispute. According to the article, at ports in Long Beach, California, there are up to 30 ships waiting to be unloaded.
This dispute and consequent marring of the United States import/export logistics system has had a negative effect on the nation's agricultural trade. In the article, AP says, "Farm exports suffered. McDonald's in Japan, for example, began rationing fries because of a potato shortage. Apple, nut and hay producers all said they were losing out to foreign competitors. The meet industry tallied its losses in the tens of millions of dollars."
In a year where profit margins for agricultural commodity producers are thin, it's paramount that prices for these producers grow as high as possible. Unfortunately, this blip in trade does not help out the cause. Late shipments of products to other countries hurts our reputation of delivering goods reliably helping to reduce our competitiveness with other countries that supply the same ag goods. My hope is that on Monday, when futures begin trading again, that prices rally for ag commodities in response to this good news.
No comments:
Post a Comment