Hopes for a resolution to the standoff between dockworkers and port employers on the US East and Gulf coasts are fading, with a January strike now appearing unavoidable. The primary sticking point remains port automation, despite a prior tentative agreement on wages that temporarily ended a three-day port closure in October.
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Negotiations at a Standstill
The International Longshoremen’s Association (ILA) and the US Maritime Alliance (USMX) had agreed to extend their current master contract and negotiations until January 15, just days before Donald Trump’s presidential term begins. However, the ILA’s staunch opposition to automation has brought talks to a standstill.
USMX insists that embracing modernization and advanced technology is vital for increasing capacity and sustainability in the US maritime industry. With limited available land at most ports, densifying existing terminals through automation is seen as the only path forward.
“Modern crane technology implemented over a decade ago doubled container capacity at one terminal, increased daily worker numbers from 600 to 1,200, and raised wages from higher cargo volumes,” USMX noted.
ILA’s Opposition: Jobs and Security at Risk
The ILA argues that automation, including the use of semi-automated rail-mounted gantry cranes (RMGs), 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, stating that promised benefits failed to materialize while automation became a model for job losses.
Daggett also criticized a “new technology clause” in the master contract, claiming it allowed employers to unilaterally introduce new equipment after filing a notice, bypassing safeguards for workers’ roles.
The union further raised cybersecurity concerns, warning that increasingly interconnected automated systems could leave ports vulnerable to foreign adversaries. “Imagine a foreign adversary, like China, hacking our port systems,” Daggett said. “This could cripple the US economy overnight.”
Forwarders Brace for Disruption
Logistics professionals are preparing for significant fallout from a January strike. Bob Imbriani, SVP International at Team Worldwide, expressed concerns about widespread repercussions. Dave Minnebach, VP Global Ocean Commercial Development at AIT Worldwide Logistics, added that a strike would likely be prolonged, with work potentially taking much longer to resume.
As the deadline looms, the clash over automation underscores a broader conflict between modernization and labor concerns, with the outcome set to have far-reaching implications for US supply chains.