
Hopes for a resolution to the standoff between longshoremen and port employers along the U.S. Eastern and Gulf Coast are fading, with strikes in January now looking inevitable. The main sticking point remains port automation, despite a tentative agreement on wages and a temporary end to a three-day port closure in October.
Also read: Strike fears and potential tariff hikes drive import surge at U.S. ports
Negotiations deadlocked
The International Longshoremen’s Association (ILA) and the United States Maritime Union (USMX) have agreed to extend the current prime contract and negotiations until January 15, just days before the start of President Donald Trump’s term. However, the ILA is staunchly opposed to automation, leading to a deadlock in negotiations.
USMX maintains that the adoption of modern and advanced technologies is critical to increasing the capabilities and sustainability of the U.S. maritime industry. With limited land available in most ports, increasing the density of existing terminals through automation is seen as the only way forward.
“Modern crane technology implemented more than a decade ago has doubled one terminal’s container capacity, increased the number of daily workers from 600 to 1,200, and increased wages as cargo volumes increased,” USMX noted.
ILA opposition: jobs and security at risk
The ILA believes that automation, including the use of semi-automated rail gantry cranes (RMG), threatens jobs, national security and the future of the workforce. ILA executive vice president Dennis Daggett pointed to a greenfield terminal project in the 2000s as a cautionary tale, saying promised benefits failed to materialize and automation became the poster child for job losses.
Daggett also criticized the “new technology clause” in the main contract, claiming it allowed the employer to unilaterally introduce new equipment after giving notice, bypassing safeguards for workers’ roles.
The alliance further raised cybersecurity concerns, warning that increasingly interconnected and automated systems could leave ports vulnerable to attacks by foreign adversaries. “Imagine a foreign adversary like China invading our port system,” Daggett said. “This could cripple the U.S. economy overnight.”
Freight forwarders brace for disruption
Logistics professionals are bracing for serious consequences from January’s strike. Bob Imbriani, senior vice president of international at Team Worldwide, expressed concern about the widespread impact. Dave Minnebach, vice president of global ocean commercial development for AIT Worldwide Logistics, added that the strike could last for a long time and that work could take even longer to recover.
As the deadline approaches, the conflict over automation highlights a broader conflict between modernization and labor issues, the results of which will have far-reaching consequences for U.S. supply chains.
Leave a Reply Cancel reply
You must be logged in to post a comment.