Coffee containers pile up at US ports during strike By Reuters

By Marcelo Teixeira

NEW YORK (Reuters) – Unloading of hundreds of containers of imported coffee beans at U.S. East Coast ports has stalled due to a strike by dock workers, exacerbating tight supply in the top coffee-consuming nation.

Delays in the delivery of imported coffee to US roasters and coffee chains could further push up bean prices, which hit multi-year highs last week due to tight supply, and raise costs for companies and consumers.

Prices of coffee held in U.S. warehouses are already rising because of the delays, said a coffee trader with containers stuck at ports.

“We have about 40 containers waiting to be moved,” said the chief trader of one of the largest US coffee importers, which supplies roasters and coffee shops nationwide.

“The owners of the containers have already told us they will charge extra if the boxes take longer than normal to be returned,” he added, asking not to be named because he is not authorized to speak publicly on the matter.

A strike by port workers entered its second day Wednesday, halting the movement of containers through ports from Maine to Texas, affecting shipments of hundreds of products, including food.

Some coffee sellers have stopped offering spot deals as they wait to see how the strike develops, a second trader said.

U.S. coffee stocks are at a historic low, traders said, as importers shunned large stocks to cut storage costs in a period of high interest rates. This situation aggravates the problems of the port.

“Some regions (of the U.S.) may experience a supply squeeze,” the top trader said.

Industry participants, however, believe that the labor issue could be resolved quickly as the magnitude of the problem warrants attention.

“We source coffee from 35 different countries. If this (strike) goes on for a long time, everybody is going to be affected,” said Will Ford (NYSE: ), president of operations at Arkansas-based Westrock Coffee Company.