Hide exports could be hit by US ports strike
Port workers on the east coast and Gulf coast of the US have begun industrial action. The labour contract they had in place with their employers lapsed on October 1 and a strike began at midnight on that day.
Affected ports include those in New York, New Jersey, Virginia and Houston. The US Chamber of Commerce has reported that strike action at these locations alone would have an economic impact of more than $1.3 billion per day.
Executive vice-president of the US Chamber of Commerce, Neil Bradley, told CNBC: “Within hours, you will start to see some of the ripple effects. A one-day strike at these ports creates a backlog that takes, on average, six days to clear. If the strike goes on for two days, you are talking about two weeks just to clear up the mess. A strike that lasts one week disrupts the economy well into November.”
He said the agricultural sector in the Midwest is one of those that rely heavily on the efficient functioning of these ports to access global markets. This indicates that disruption in the shipment of products from that sector, including hides, is likely.
Image: Port Authority of New York and New Jersey.
