Global shrimp exporters brace for US delivery delays as strike closes ports

Shrimp exporters are facing significant delays in their shipments to the US due to the ongoing strike by the International Longshoremen’s Association, market sources said.

An extended strike could lead to sharp price increases and potential supply shortages as importers scramble to find alternative routes, sources said.

The strike started Oct. 1, halting operations at 36 ports across the US East Coast and Gulf Coast, including critical hubs New York/New Jersey, Houston and Miami.

The US relies on imports for 80% of its seafood supply, primarily from Canada, Chile, India, Indonesia and Vietnam, according to the US Department of Agriculture. The disruption comes at a critical time for the sector as shrimp imports typically peak around the holiday season, according to US Department of Commerce data.

The US imported 318,000 metric tons of shrimp in January-July 2024, compared with 331,000 metric tons a year earlier, according to data from S&P Global Market Intelligence’s Global Trade Analytics Suite

Indian suppliers are expected to face logistical bottlenecks if the strike continues. The country is the top supplier of US imports, sending 132,500 metric tons in January-July 2024, up 2% year on year, the GTAS data showed. The supplies represent 42% of US shrimp imports so far this year.

"Most shrimp exports from India to the US are based on long term contracts, so there's continuous shipments from India," an Indian exporter said, adding that many US retailers anticipated the potential strike and moved shipments forward to August-September to avoid disruptions.

"Just-in-time inventory is not very common in the shrimp industry," one source said. "People use cold storage precisely because this sort of incident happens a lot commercially."

However, prolonged port closures may force importers to reroute shipments to West Coast ports or delay arrivals, further complicating an already fragile supply chain.