FreightWaves Examines International Longshore Union's Concerns over Port Automation and Its Impact on Global Port Competitiveness
In two weeks, the current labor contract between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) will expire. Over 70,000 dockworkers spread across 36 East Coast and Gulf Coast ports from Maine to Houston may go on strike, potentially paralyzing a critical segment of the domestic supply chain.
In addition to wage demands, one of their main grievances is USMX’s investment in automation.
Employers, operators, and port authorities along the East Coast and Gulf Coast have announced plans to “maintain its existing technical language that establishes a framework for modernization and efficiency while protecting jobs and work hours.” However, negotiations were paused at the beginning of summer due to an Alabama port’s use of automated gates.
Are Concerns Over Automated Gates Justified?
In June, ILA stated that they recently discovered APM Terminals and Maersk Line have been using an autonomous gate system to handle truck traffic in and out of the Port of Mobile without utilizing ILA labor. However, sources noted that this automated gate system has been in use at the facility since 2008—spanning over two contract periods. The union also expressed concerns about the deployment of this technology at other USMX-represented ports.
The main contract between ILA and USMX in 2018 stipulates that “no fully automated terminals shall be developed or used with fully automatic equipment during the term of this master agreement.” Full automation is defined as machinery or equipment without human interaction.
According to The New York Times, the automated gates currently in use at Mobile are not fully automated. ILA members manually inspect the work done by these automated gates, which is considered semi-automation technology and can be installed with approval from the ILA’s new technology committee under the current master agreement.
Both ILA and USMX failed to respond promptly to FreightWaves’ request regarding whether the installation of automated gates was approved by the technology committee.
Will Automation Impact ILA Jobs?
The ILA’s concerns about port automation and technological upgrades stem from the potential threat these innovations pose to dockworkers. Historically, ILA has strongly opposed the automation of port operations, dating back to the introduction of containerization, which significantly reduced the need for manual labor.
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In this context, ILA’s position is clear: it views automation not just as modernization but also as a direct challenge to its members’ livelihoods. This is why the union strongly opposes technological upgrades that bypass union labor and firmly resists any progress perceived as potentially reducing staff numbers and weakening job security.
Supporters of technology argue that automation can create new roles for ILA members, including maintenance, repair, and verification of automated equipment. As automation increases productivity, more ILA members may be needed to support higher port throughput.
While USMX has not provided assurances of increased productivity from automation as expected by the union, membership in the union has grown by 15% since 2020, while West Coast ports have seen a 12% increase in union workers during the same period. Both regions have also invested more heavily in automated machinery.
A recent report by the Government Accountability Office (GAO) found that automation brings multiple benefits, including improved worker safety through reduced human-machine interaction and increased efficiency through denser container stacking.
However, its impact on port performance and labor is mixed.
Some stakeholders reported that automated equipment moves containers more slowly, while others highlighted the creation of higher-skilled jobs and improved working conditions.
The Port of Mobile and its automated gate system are part of this study as well.
The Future of Port Automation
In the same GAO report, US port operators indicated that they face challenges in balancing labor concerns, costs, and operational priorities when deciding whether to further automate, finding themselves behind international peers in terms of innovation.
While all ten major US container ports, including two with ILA representation, have integrated automation technologies such as automated gates and cargo handling equipment to varying degrees, this adoption is generally less widespread than at foreign ports.
Globally, ports tend to adopt automation more aggressively, driven by higher container throughput and different labor markets. Although US ports have the opportunity to leverage grants that support automation, these programs are not specifically targeted at port modernization.
Therefore, US ports must balance complex factors when deciding on the extent and type of automation to implement, leading to a relatively slower adoption rate.
FreightWaves interviewed industry expert and investor Benjamin Gordon, Managing Partner at Cambridge Capital and BGSA, who stated that focusing on old strategies could lead to failure in today’s environment.
He believes that the ILA’s resistance to port automation due to past events may result in missed opportunities for progress.
“Most people are fighting ‘yesterday’s war’… by resisting automation, ILA might think they’re promoting unionized work at terminals. But are they just weakening US competitiveness, strengthening China, increasing costs, and fueling inflation?” Gordon said.
He pointed out that among the top 20 container throughput ports globally, only one is in the United States—Los Angeles ranks 17th. China holds ten of the top 16 positions.
“How many do you think are hampered by prohibiting investment in productivity-enhancing technology?” Gordon said. “Perhaps a more effective approach would be for ILA to collaborate with ports, ocean carriers, trucking companies, and shippers. They can jointly propose cooperative solutions that reflect reality, drive the adoption of technologies on par with the rest of the world, and enhance US competitiveness… It’s like ‘raising all boats’.”
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Source: FreightWaves
