A strike by dockworkers at US East and Gulf Coast ports could shut down cargo flow, affecting imports and exports, if a union and an employers’ group fail to reach an agreement on the use of automated machines that can operate without humans.
The International Longshoremen’s Association (ILA) and the United States Maritime Alliance have resumed talks over a new labor contract, which includes provisions governing automated technology. A short strike in October led to a 62% raise for longshoremen over six years, but negotiations on automation remain stuck.
Ports that handle most imports are at risk of closure if an agreement is not reached by January 15, harming businesses reliant on imports and exports. The union opposes automation due to concerns about job losses, while employers argue it’s needed for efficiency and safety improvements.
The maritime alliance has agreed to increase wages but may not compromise on technology. Business leaders have accelerated imports, delayed others, and diverted some to West Coast ports as a contingency plan. A strike of more than a week could have significant ripple effects, impacting the global supply chain.
A potential deal involves the union agreeing to more automation in exchange for solid job guarantees from employers. This is similar to a model used by the International Longshore and Warehouse Union on the West Coast, which secured guarantees that members would maintain and repair machinery at terminals.
With the cost of shipping a container rising over 60% in the past year due to attacks on shipping routes, an East and Gulf Coast shutdown could lead to higher surcharges for containers destined for those ports.
Source: https://www.nytimes.com/2025/01/08/business/economy/ports-longshoremen-contract-talks.html