Automation has become a hot-button issue in the ongoing negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX). While the ILA fears job losses due to automation, experts argue that embracing technology is crucial for the competitiveness of American ports.
The ILA’s stance is clear: it seeks explicit assurances against the implementation of automated technology during the term of the new agreement. However, the issue remains unresolved, despite a temporary deal that addressed the union’s demand for a significant wage increase.
The Human Element in Automation
Margaret Kidd, a supply chain and logistics expert at the University of Houston, suggests a middle ground. She emphasizes that not all automated technology replaces human tasks on a one-for-one basis. For instance, remotely-operated ship-to-shore cranes, automated straddle carriers, and driverless guided vehicles still require human supervision and management.
Kidd advocates for up-skilling and training, arguing that “technology doesn’t operate in a silo — you still need humans.” This approach could potentially address the ILA’s concerns about job losses while also advancing port efficiency and competitiveness.
The Clock is Ticking
The temporary labor contract extension expires on January 15, 2025. If the ILA and USMX fail to reach an agreement by then, East and Gulf Coast ports could face their second strike in three months. The timing is particularly sensitive, as it coincides with the Chinese Lunar New Year, a period when production slows down due to factory closures in China.
Experts advise importers to prepare for the possibility of a port strike overlapping with the holiday. Proactive steps such as securing inventory, diversifying supplier networks, and considering alternative shipping routes could be crucial for navigating the anticipated challenges in January.
As the countdown to the deadline continues, the question remains: Can U.S. ports find a middle ground on automation before the second strike?
