West Coast Labor Dispute is Hurting Idaho Potato Industry

Port disruptions on the West Coast due to labor contract negotiations between the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) are hurting Idaho agriculture and Idaho’s exporters.

The problems at West Coast ports are numerous including congestion, slowdowns and terminal closures. All of which are contributing to product delays, lack of available equipment, increased costs and lost sales.

The dispute is hurting Idaho agriculture directly. Any product that is exported from the West Coast, especially containerized cargo, is impacted. This includes beef, fresh potatoes, apples and pears, cheese and dairy products, hay, and processed foods including French fries. “Exports are an essential part of Idaho’s economy,” said Celia Gould, Director, Idaho State Department of Agriculture, “and this disruption is a serious problem.”

The Idaho potato industry has suffered from numerous lost loads. Some customers have cancelled orders because they can’t get the product delivered. Some orders have sat at the port for a week and a half only to be brought back to Idaho. The fresh product couldn’t then handle a two week trip on the water without suffering quality problems.

“The slowdowns at the ports are wreaking havoc on previously signed contracts and price negotiations with new and current clients. Container loads have been ordered and paid for, but are not reaching their destinations on time. Shippers aren’t quoting new shipments because the cost of transportation is increasing on a daily basis and there is no assurance they can get a truck within a week or then find container space on a ship within a calculable timeframe.

The port issues could cause us to lose customers, in particular in Asia, to competition from Europe or Australia,” said Frank W. Muir, President/CEO, Idaho Potato Commission.

Potato Processors in Washington and Oregon face a similar situation.