The recent strike at 36 major U.S. ports might be over, but the underlying issue of port inefficiency remains a real problem. U.S. ports consistently lag behind their international counterparts in efficiency, presenting an ongoing challenge for agriculture and food supply chains.

According to the Container Port Performance Index (CPPI), which measures global port efficiency based on several factors, U.S. ports perform poorly compared to other countries across areas like shipping turnaround time, crane productivity and infrastructure management. Ports with lower CPPI rankings tend to face more delays and operational bottlenecks, further straining supply chains, particularly for U.S. agriculture.

The strike at ports like Houston, New York & New Jersey, and New Orleans was a temporary disruption that brought attention to the ongoing inefficiencies that already exist, particularly in the transportation of bulk agricultural commodities.

The role of automation in port efficiency

One key factor contributing to the inefficiencies in U.S. ports is the limited use of automation. While port workers are critical in maintaining operations, U.S. ports are far less automated than global competitors, especially in regions like East Asia. This results in longer vessel turnaround times, severely disrupting supply chains and increasing costs for agricultural producers.

Table 1: Container Port Performance Index (CPPI) for U.S. Ports
Port Name
Total Tonnage (2022)
CPPI 2023 Ranking
Recently on Strike?
Houston
293,833,530
327
Yes
New York & New Jersey
141,290,423
99
Yes
New York & New Jersey
141,290,423
99
Yes
Long Beach
92,958,926
376
No
New Orleans
83,254,102
133
Yes
Port of Virginia
69,433,624
306
Yes
Los Angeles
59,819,381
378
No
Savannah
53,692,598
398
Yes
Mobile
50,520,298
186
Yes
Baltimore
40,602,248
191
Yes
Philadelphia
31,790,943
50
Yes
Port Tampa Bay
27,979,907
214
Yes
Charleston
27,714,537
60
Yes
Port Everglades
25,558,659
63
Yes
Tacoma
19,907,856
402
No
Seattle
18,504,702
356
No
Oakland
18,010,685
396
No
Jacksonville
17,724,788
83
Yes
Honolulu
14,417,022
219
No
Miami
8,846,375
77
Yes
Wilmington
8,672,852
72
Yes
Boston
4,455,140
73
Yes

Data sources: World Bank. (2024). The Container Port Performance Index 2023: A comparable assessment of performance based on vessel time in port. Washington, DC: International Bank for Reconstruction and Development/The World Bank.

U.S. Army Corps of Engineers. (2024). Waterborne tonnage for principal U.S. ports and all 50 states and U.S. territories; Waterborne tonnages for domestic, foreign, imports, exports and intra-state waterborne traffic. U.S. Army Corps of Engineers Digital Library.

Impact on U.S. agriculture

Inefficient ports pose a significant challenge for U.S. agriculture, particularly for row crop farmers. While these commodities are rarely imported, the inputs required to grow them are. According to the U.S. Bureau of Economic Analysis, the import share of fertilizer inputs increased slightly in 2012 before decreasing to 28% by 2017. The pesticide and agricultural chemicals sector started with a much lower import share of 7% in 2007, gradually increasing to 8% in 2012 and 10% by 2017. This indicates a steady rise in the proportion of imports for pesticides and agricultural chemicals, reflecting a growing dependency on foreign production for these materials over time.

Figure 1: Import Share of Agricultural Inputs

Data source: U.S. Bureau of Economic Analysis Input-Output Accounts Data. Domestic Supply of Commodities by Industry, 402 Industries.

Delays affect input supply chains and disrupt the export of U.S. crops. Corn, soybeans, and other row crops face logistical bottlenecks that increase export costs and reduce competitiveness in global markets. This issue becomes even more pressing as U.S. agriculture expands its export markets for high-value products like meat, dairy, and fresh produce, which rely on quick and reliable transportation. Perishable goods are especially vulnerable to these delays, as they can lead to increased costs, reduced quality, and missed market windows.

Port inefficiencies and global food supply chains

It’s not just farmers who are affected by inefficient ports. U.S. food retailers and manufacturers should also be concerned. As shown in Figure 2, sectors like wet corn milling, flour milling, and malt manufacturing have experienced rising import shares. Even sectors with lower import reliance, such as soybean and other oilseed processing, showed modest increases. This growing globalization of imported inputs means that delays and inefficiencies at U.S. ports directly affect manufacturers’ ability to secure necessary raw materials. For food manufacturers and retailers, disruptions caused by port inefficiencies could lead to higher costs, supply shortages, and challenges in meeting consumer demand, ultimately threatening profitability and market stability. Efficient ports are therefore crucial not only for U.S. farmers but also for domestic food supply chains.

Figure 2: Import Shares for U.S. Food Manufacturing
Figure 2. Import Shares for U.S. Food Manufacturing

Data source: U.S. Bureau of Economic Analysis Input-Output Accounts Data. Domestic Supply of Commodities by Industry, 402 Industries.

A call for modernization

Inefficient ports are challenging for an already-strained agri-food sector grappling with tight margins and supply chain issues. With increasing global competition, U.S. farmers and agribusinesses can’t afford to be slowed down by port delays. If American ports can’t keep up with the pace of global logistics, the competitiveness of U.S. agricultural exports could be severely impacted, affecting everything from small family farms to large agribusinesses. In the long term, addressing these inefficiencies through the modernization of port operations and the adoption of more automated technologies could significantly improve the resilience and profitability of the agri-food supply chain. As discussions around sustainability and efficiency continue, modernizing U.S. port infrastructure should be a top priority.

Improving port efficiency will require collaborative efforts among policymakers, agribusinesses, and industry stakeholders. Modernizing port operations would reduce spoilage, improve product quality, lower costs for farmers, and help maintain U.S. agriculture’s competitiveness in the global marketplace.

Further reading

Berger, P., C. Cutter, & C. Deng. 2024. “The Battle Over Robots at U.S. Ports Is On.” Wall Street Journal. October 8. https://www.wsj.com/business/logistics/us-ports-automation-union-strike-f94bb4b7?mod=hp_lead_pos7