NEW YORK (Reuters) – The unloading of hundreds of containers with imported coffee beans at the United States’ East Coast ports has come to a halt due to a portworkers’ strike, worsening the already tight supply situation in the largest coffee-consuming nation.
The delivery delays of imported coffee to U.S. roasters and coffee chains could further escalate bean prices, which recently reached multi-year highs due to limited supply, potentially raising costs for companies and consumers alike.
A coffee trader, whose containers are currently stuck in ports, noted that prices for coffee stored in U.S. warehouses are already increasing due to these delays.
"We have some 40 containers waiting to be moved," stated the head trader of one of the largest coffee importers in the U.S., which supplies roasters and cafeterias across the nation. He mentioned that the owners of the containers have indicated they will impose additional fees if the boxes take longer than usual to be returned, requesting anonymity as he was not authorized to speak publicly on the issue.
The portworkers’ strike, which has entered its second day, has brought container movement to a standstill at ports from Maine to Texas, affecting shipments of numerous products, including food. Some coffee sellers have halted offering spot deals, choosing to wait and see how the strike evolves, according to a second trader.
U.S. coffee stocks already sit at historically low levels as importers have been maintaining low inventories to reduce storage costs amidst high-interest rates, a situation that exacerbates the current port issues.
"Some regions [in the U.S.] might experience a supply squeeze," warned the first trader.
However, industry participants believe the labor dispute could be resolved quickly, given the scale of the problem.
"We source coffee from 35 different countries. If this [strike] persists for a long duration, it will impact everyone," stated Will Ford, president of operations at Arkansas-based Westrock Coffee Company.
