Contract negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) are set to resume on January 7, raising hopes for a resolution before the current deal expires on January 15. Bloomberg reports that the talks aim to avoid a potential strike that could shut down major ports on the US East and Gulf coasts, which handle about half of the nation’s container volumes.
The key sticking point remains using semi-automated rail-mounted gantry cranes at port terminals. While the equipment is allowed under the current agreement and already in use at some terminals, ILA President Harold Daggett has taken a firm stance against further automation, calling it a threat to dockworker jobs.
USMX argues that modernization, including automation, is essential for the competitiveness of US ports and the broader economy. In a December 20 statement, USMX emphasized, “Modern technology dramatically increases the amount of cargo that can be moved through a port annually. ILA members make more money when they move more cargo, and ports need to hire more workers to manage that growth.”
The ILA has secured support from President-elect Donald Trump, who has publicly opposed automation and backed dockworkers in their efforts to preserve jobs.
Both sides have prepared for the possibility of a labor disruption. On December 31st, Maersk advised its customers to retrieve their loaded containers and return empty ones at the affected ports before January 15. The company stated, “This proactive measure will help mitigate any potential disruptions at the terminals.”
“Let’s hope the parties can actually get a deal. If not, they must do another extension to avoid a strike,” said Jonathan Gold, Vice President of Supply Chain and Customs Policy at the National Retail Federation.
If no agreement is reached, a strike could begin as early as January 16, significantly impacting supply chains and industries nationwide.