Shrimp exporters in the US are facing headwinds as the International Longshoremen’s Association strike enters its second week. Operations have ground to a halt at 36 major ports along the US East and Gulf Coasts, including critical gateways such as New York/New Jersey, Houston, and Miami. The disruption, which began on October 1, is already snarling logistics, and the consequences could soon spill over into the broader seafood market, raising prices and creating shortages.

An Industry at the Mercy of Imports

The United States’ dependence on foreign seafood is stark. The country imports 80% of its seafood supply, primarily from markets such as Canada, Chile, India, Indonesia, and Vietnam, according to the US Department of Agriculture. Shrimp, one of the most popular and valuable seafood products, has become the latest casualty of the labor dispute.

Timing could hardly be worse. Shrimp imports traditionally peak in the final months of the year, with demand driven by the holiday season. According to the US Department of Commerce, the country imported 318,000 metric tons of shrimp in the first seven months of 2024, a slight dip from 331,000 metric tons during the same period in 2023. A protracted strike could further strain supply, just as consumers are preparing to splurge on festive feasts.

India Faces a Logistical Logjam

India, which supplies more than 40% of America’s shrimp imports, is feeling the pressure. Between January and July 2024, India exported 132,500 metric tons of shrimp to the United States, a 2% increase over the previous year, according to GTAS data. Yet this steady growth could be derailed if the strike persists. For Indian suppliers, logistical bottlenecks are now a very real threat, as many shipments rely on East Coast ports to reach their destinations.

Fortunately, some American retailers anticipated the labor unrest and moved their shipments forward to August and September, avoiding the worst of the disruptions for now. Nonetheless, such preemptive measures can only mitigate short-term risks. If the strike drags on, the system could start to buckle, leaving importers scrambling for alternatives.

Ecuador’s Cold Comfort

Ecuador, the second-largest supplier of shrimp to the US, has fared better thus far. The country shipped 106,500 metric tons of shrimp to America between January and July, accounting for roughly 33% of US imports. Ecuador’s relative resilience is partly due to robust frozen inventories, which have allowed the nation to weather the storm.

Unlike many industries that rely on just-in-time inventory management, shrimp exporters have long used cold storage as a buffer against inevitable commercial disruptions. But while this may protect Ecuadorian exporters in the short term, prolonged port closures could still pose significant logistical challenges.