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The shutdown at American ports threatens global grain supplies, raises prices and could trigger a food crisis in several countries.
The strike of International Longshoremen's Association (ILA), scheduled to begin on January 15, promises to have significant consequences for global trade. Therefore, the strategic ports of the United States, which play a key role in grain export, may face critical delays. In addition, essential products such as corn, wheat and soybeans may be directly impacted, harming markets that depend on these exports to ensure their food security.
Why does this strike pose a risk to global supply?
First, it is important to understand that the United States is the world’s leading grain supplier, accounting for about 60% of corn and soybean exports. On the other hand, any disruption in shipments of these products inevitably reduces global supply, which in turn drives up prices and increases food inflation. In addition, highly dependent countries such as Egypt, Indonesia and Japan face an even greater risk of food shortages, which could subsequently have serious socioeconomic impacts.
What are the main reasons for this stoppage?
First of all, it is crucial to highlight that the strike arises from disagreements over automation in the ports and wage demands. On the one hand, workers fear losing their jobs due to the advance of semi-automation technologies. On the other hand, unions continue to demand better wage conditions, even after a provisional 62% increase in 2024. In addition, President-elect Donald Trump’s public support for the union has strengthened the workers’ position, making negotiations more complex and challenging.
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What would be the global impacts of a prolonged strike?
If the strike continues, international export contracts will inevitably be affected, leading to cancellations and higher logistics costs. In addition, countries that depend directly on American grains, such as those in sub-Saharan Africa and Asia, would face serious difficulties in maintaining food supplies. Therefore, while alternatives such as Brazil and Argentina could help, their limited capacity makes it impossible to fully replace the United States’ role in the global market.
What steps are being taken to resolve the situation?
Negotiations between workers and employers, which are due to resume on January 7, represent an attempt to avoid a strike. However, the chances of an agreement before January 15 appear slim. On the other hand, the US government could intervene again, as it did in 2024, to avoid a prolonged crisis. However, union resistance, fueled by political support from Trump, makes the outcome even more uncertain and worrying.
Finally, it is clear that the strike at American ports is not just a local issue, but a global problem with direct impacts on grain trade. Furthermore, it poses a threat to the food security of millions of people and to global economic stability. Resolving the impasse quickly is essential to prevent the crisis from continuing, which would inevitably affect emerging economies as well as more developed ones.
