By By Tom Polansek and P.J. Huffstutter
CHICAGO (Reuters) – Dockworkers striking at U.S. East Coast and Gulf Coast ports are preventing imports of beef that restaurants and retailers increasingly rely on to make hamburgers due to limited domestic supplies, traders and industry members said.
The labor strike blocks everything from shipments of automobiles to containers filled with Guatemalan bananas and Italian wine from loading or unloading at dozens of ports from Maine to Texas. Along with beef, imports of seafood and U.S. exports of chicken are being disrupted.
Even short-term disruptions to shipments could snarl the broader U.S. food supply chain, according to experts and food importers. If the strike stretches out, the result will be either shortages of some food products, price inflation or both, they said.
SURF AND TURF
PanaPesca USA LLC, which imports and exports seafood, also stocked up on extra supplies of squid and shellfish to meet its customers’ needs ahead of the strike, said chief commercial officer Eric Buckner.
Much of PanaPesca’s product in freezer freight containers arrived, but some is still stuck on ships now anchored offshore, he said.
The strike could increase costs for fast food restaurants if it persists more than a week, said Bob Chudy, a consultant for companies that import beef.
“All of a sudden, fast food chains that have been relying on much more reasonably priced lean meat from overseas would be forced to turn to domestic alternatives,” Chudy said.
McDonald’s Corp (MCD) and Burger King, owned by Restaurant Brands International (QSR), did not respond to requests for comment.
Beef importers could face demurrage fees if the strike persists, costs that may be passed on to consumers, analysts said. Shipments of refrigerated fresh meat, which can be used in restaurant dishes like fajitas, risk spoiling, they said.
U.S. retail prices for ground beef in August reached a record high of $5.58 per pound, according to the latest available federal data.
For the U.S. chicken industry, which relies on exports, the strike is also ill-timed, said Matt Busardo, commodity information firm Expana’s team lead for U.S. poultry.
Domestic demand is waning as consumers switch to eating cold-weather meals like pot roast and chili, instead of grilling chicken, he said. The sector relies on ports such as Savannah to export leg quarters and drumsticks to countries including Angola and Cuba.
(Reporting by Tom Polansek and PJ Huffstutter; Editing by Andrea Ricci)
