YES Containers’ Post

For years, automation at U.S. ports has been a contentious issue, fueling ongoing disputes between labor unions and employers. This tug-of-war over the future of port operations has far-reaching implications—not only for workers’ job security and the stability of the supply chain that supports the U.S. economy but also for the global shipping market.

The recent strike has once again underscored the fragility of the global supply chain. A labor conflict in one area can lead to widespread economic turmoil worldwide.

How to achieve a balance between automation and manual work?

The "future war" of US port automation vs. employment crisis! Global shipping focus! The controversy over port automation in the United States has escalated, and the tug-of-war between labor and management has intensified. The latest strike has directly paralyzed ports on the East Coast and Gulf Coast, affecting the global supply chain! Who is the winner and who will lose? 👉https://lihi.cc/uprWj Efficiency vs. Livelihoods: Can automation make U.S. ports more competitive, or are workers doomed to lose their job security? Impact on global trade: Will labor confrontations lead to the flow of international freight to other, more efficient ports? The key to the future: the solution to coexistence! Invest in training programs to help workers transform! Explore new cooperation models between labor and capital to ensure a win-win situation for the economy and employment! What do you think? How to find a balance between efficiency and employment? Leave a message to discuss with us! 👇 #dockworker #portautomation #jobcrisis

As of mid-2024, 71 container terminals worldwide have either fully or partially automated their operations. This represents 8.3% of all main container terminals but accounts for 14.7% of the global footprint in terms of hectares. Automated terminals are much larger, averaging 74.7 hectares versus 51.7 hectares for non-automated ones, showing the need for more space with automation. In the U.S., the International Longshoremen’s Association (ILA) has been at the forefront of a heated debate over port automation, which they view as a threat to job security. Who could forget last week's port strikes along the US East and Gulf coasts, which saw dockworkers walking out for three days, were a testament to the union's resolve. Although a tentative deal was struck with the United States Maritime Alliance (USMX) leading to the suspension of the strike until January, the underlying issues remain unresolved. The ILA's stance is clear: "We are fighting to guarantee that ILA members continue to handle key tasks at port facilities, such as manning cranes and servicing equipment, preventing employers from outsourcing these jobs to non-union members or automated systems." This resistance to automation stems from a broader concern about job preservation and the role of union workers in the face of advancing technology. The negotiations have resulted in a significant 61.5% wage increase spread over six years, which the ILA hailed as "unprecedented." However, the union remains adamant about including strong protections against automation in their labour contract. The ILA’s fight to prevent automation from replacing jobs is a major sticking point, as automation is seen as critical for port efficiency and modernisation. The global trend towards automation is undeniable, with many ports already having advanced beyond the point of no return for certain machinery. The ILA's position presents a substantial challenge to port operators who argue that automation is essential for maintaining competitiveness. Lars Jensen, head of Vespucci Maritime, a container consultancy, pointed out that American ports are already lagging in efficiency, citing a recent World Bank container port productivity index where no American facility featured within the top 50 ports. "A fight against automation where the aim, explicitly, is to preserve jobs will act as a brake on developing the competitiveness of US ports versus ports elsewhere," Jensen argued. The struggle between keeping jobs and adopting automation is a big issue in the industry. Automation boosts efficiency and capacity but also challenges workers. The results of the ILA's negotiations will impact not only U.S. ports but also the global shipping industry as it balances new technology and job security. (The below map comes from https://lnkd.in/gS2twQXm - and it took me waaaay to long to work out what I was looking at. 🤣)

"The International Longshoremen’s Association and employers were supposed to meet in New Jersey over four days this week. The union said Wednesday that talks broke down Tuesday because of employer plans to expand the use of semi-automated machinery at ports." KDL’s Chainsense is tingling. What we’ve been posting about and advising our clients on could soon become reality. The ILA will likely fight much harder over the elimination of union jobs than it did over pay. Combine this with the changing administration, and even Nostradamus couldn’t predict how this will play out. When it comes to these disruptions Rob Hammel often quotes Ben Franklin: "Fail to prepare, prepare to fail." If you're looking for assistance on this issue, KDL is here to help. #PeopleDriveLogistics #ILA #InternationalShipping #Contracts #Automation

𝐎𝐡, 𝐚𝐫𝐞 𝐰𝐞 𝐬𝐮𝐫𝐞 𝐢𝐭'𝐬 𝟐𝟎𝟐𝟒? Because it feels like some people are still stuck in the technological Stone Age. I mean, adopting tech to make life easier—what a radical concept, right? Why evolve when you can just cling to outdated methods and pretend innovation is a passing trend? As the International Longshoremen's Association #ILA contract extension approaches its January 15, 2025 deadline, stakeholders in the shipping and logistics industry closely monitor developments, especially around one of the most contentious issues: automation. Automation in port operations, which involves using advanced technologies to replace or reduce the need for manual labor, has long been a sticking point in negotiations between the ILA and the United States Maritime Alliance (USMX). Historically, the ILA has expressed strong opposition to automation, fearing it would result in significant job losses for dockworkers. Ports on the West Coast, represented by the International Longshore and Warehouse Union (ILWU), have already seen automation take a foothold, but the East Coast and Gulf Coast ports, where the ILA operates, remain largely manual. In preparation for the upcoming contract extension deadline, several steps have been taken to address this highly sensitive issue and avoid a strike that could disrupt the entire U.S. #supplychain: - Early Negotiations and Open Dialogue, Maybe - Job Security and Training Programs, perhaps - Government Involvement, for sure - Automation Moratoriums In previous negotiations, some agreements have included temporary moratoriums on automation. This could be another potential bargaining chip in 2025 negotiations, where automation is phased in over an extended period rather than being adopted immediately, giving workers and the union more time to adapt to changes. Union Representation in #Technology Committees In some cases, port operators have agreed to include union representatives in committees responsible for planning and overseeing technological integration. By giving the ILA a direct voice in how automation is implemented, this arrangement seeks to foster #collaboration rather than conflict. While automation remains the “sticking point” in ILA contract negotiations, efforts are underway to prevent a repeat of past labor disputes. By engaging in early negotiations, emphasizing incremental changes, offering robust job security provisions, and involving government and union representatives, both sides are working to find a balanced solution that embraces the future of port operations while safeguarding the livelihoods of dockworkers. Whether these efforts will fully prevent a strike remains to be seen, but the proactive approach offers hope for a smoother transition come January 2025. #logistics

When a dockworkers’ union broke off contract talks with management in June, raising the likelihood of a strike at more than a dozen ports on the East and Gulf Coasts that could severely disrupt the supply chain this fall, it was not over wages, pensions or working conditions. It was about a gate through which trucks enter a small port in Mobile, Ala. The International Longshoremen’s Association, which has more than 47,000 members, said it had discovered that the gate was using technology to check and let in trucks without union workers, which it said violated its labor contract. “We will never allow automation to come into our union and try to put us out of work as long as I’m alive,” said Harold J. Daggett, the union’s president and chief negotiator in talks with the United States Maritime Alliance, a group of companies that move cargo at ports. The I.L.A., which represents workers at economically crucial ports in New Jersey, Virginia, Georgia and Texas, has long resisted automation because it can lead to job losses. Longshoremen have grim memories of how past innovation reduced employment at the docks. Shipping containers, introduced in the 1960s, allowed ports to move goods with fewer workers. “You don’t have to pay pensions to robots,” said Brian Jones, a foreman at the Port of Philadelphia, who said he’d vote for a strike if it came to it. He began working at the port in 1974, when bananas from Costa Rica were unloaded box by box. Asked why he was still working at 73, Mr. Jones said, “I like the action, and the money doesn’t hurt.” Workers throughout the economy are worried that technology will eliminate their jobs, but at the ports it threatens one of the few blue-collar jobs that can pay more than $100,000. The United States has done less to automate port operations than countries like China, the Netherlands and Singapore. But the technology is now advancing more quickly, especially on the West Coast. Automated port equipment can take many forms: Driverless vehicles can shuttle containers around the wharf. Huge cranes can stack those boxes with minimal human intervention. And “auto gates,” like the one in Mobile, process trucks. Port operators — often subsidiaries of global shipping companies — say modernization is needed to ensure that cargo flows efficiently and quickly to where it is needed. Opposition from unions is just one obstacle to automation. The installation of new machinery and software can cost many millions and even billions of dollars — investments that can take years to pay off. And some ports may not have an incentive to invest in new technology when shipping companies and their customers can’t easily move to more efficient ports.

Automation Standoff: The Future of US Dockworkers in Question The labor negotiations between dockworkers on the East and Gulf Coasts of the United States have hit a roadblock, with automation emerging as a central issue. This contentious debate highlights the growing tension between preserving jobs and embracing technological advancements. As these discussions unravel, it's crucial to consider how automation can coexist with traditional labor without disrupting livelihoods. Former President Trump has entered the arena, sparking even more debate about the impact of automation on the workforce. His involvement underscores the political and economic significance of this issue, drawing attention to the need for balanced solutions that address both technological progress and job security for dockworkers. As automation becomes increasingly intertwined with various industries, including shipping and logistics, finding a harmonious path forward is imperative. Stakeholders must work collaboratively to explore innovative solutions that support both industry evolution and workforce stability. How do you see automation shaping the future of labor in industries like shipping and logistics? Share your thoughts and let's discuss potential paths forward. #Automation #LaborNegotiations #Dockworkers #TechnologyAndJobs #EconomicImpact #Innovation - - - - - - - - - - P.S.: Need a relaxing break? Discover unique books to spark creativity at www.sleepyhippie.com

Fascinating and critically important case study re: the impact of automation on jobs and workers' lives. Core to a potential longshoreman strike in East and Gulf Coast ports is whether either side will accede to a position on automation, which is currently not permitted in their labor agreements. NYT draws a contrast with the Port of Virginia and West Coast - where automation has been contractually accepted for some time, and which seem to show higher wages and increased International Longshoreman membership (a proxy for jobs). However, I think the passage below describes the current state best: "When asked on a brief phone call whether automation had helped the Port of Virginia grow and hire more union members, Larry Bachtell, a vice president in the union’s Atlantic Coast division, said, “It’s not cut and dried,” but declined to elaborate." Unlocked NYT story here: https://lnkd.in/eDXDrcPe