New Automation and Robots at LA Ports

Описание: Thousands of longshoremen and dockworkers along the Eastern seaboard of the United States and the Gulf Coast walked off the job on Tuesday after the International Longshoremen's Association failed to reach contract agreements with the United States Maritime Alliance, which represents the ports.

The ILA's initial proposal was for a 77% salary increase over the six-year duration of their contract with USMX, as well as a complete ban on the automation of gates, cranes and container-moving trucks at its ports. These union members earn a base salary of approximately $81,000 each year; however, those who work significant overtime can earn more than $200,000 annually, the Associated Press reported.

To avert the strike, the shipping industry group offered a nearly 50% wage hike on Monday and committed to maintaining the automation restrictions from the previous contract, but the union rejected the deal as it would not protect the workforce from semi-automation.

“The ILA is steadfastly against any form of automation—full or semi—that replaces jobs or historical work functions,” the largest union of maritime workers in North America said in a statement. “We will not accept the loss of work and livelihood for our members due to automation. Our position is clear: the preservation of jobs and historical work functions is non-negotiable.”

From the picket line at the Maher Terminal in Port Elizabeth, New Jersey, ILA president Harold Daggett reiterated that the union, which boasts upward of 85,000 longshoremen, seeks "absolute airtight language" to ensure there will be no automation.

The combined 36 ports on the Atlantic to Gulf coasts play a crucial role in both U.S. and global trade, handling 57% of U.S. container volume and a quarter of annual international trade valued at $3 trillion. According to the Conference Board, this sheer size limits alternative supply chain options for U.S. businesses, making the potential impact of a strike severe. A one-week work stoppage could cost the economy $3.78 billion and drive up consumer goods prices.

The ILA has expressed significant concerns over the implementation of automation, which it believes could reduce the need for human labor. The union seeks to maintain job security in an era where technological advancements are increasingly transforming port operations, and promises to strike until they reach a deal.

“The ILA intends for the demonstrations to continue round the clock, 24/7, for as long as it takes for United States Maritime Alliance (USMX) to meet the demands of ILA rank-and-file members,” the organization said.

The Adoption Of Automation

The ascendancy of technology has long been a point of contention between workers and employers since the Industrial Revolution, when mechanized production began replacing manual labor. This tension has only intensified with the rise of artificial intelligence, as the threat of disruption or obsolescence is widespread across various sectors and job functions.

The deployment of robotics and automated technology in ports globally has been a trend aimed at increasing efficiency, reducing costs and ensuring the health and safety of workers in handling the growing volume of cargo.

Although, its adoption in container terminals remains limited in the global shipping industry. According to research published in Maritime Economic and Logistics, as reported by Axios, only 62 out of 1,300 global container terminals were automated or semi-automated by the end of 2021.

U.S. ports are lagging behind their Asian and European counterparts in adopting automation. This technological gap has resulted in slower container ship unloading times at most American ports compared to those in Asia and Europe. Industry experts warn that without embracing more automated systems, the U.S. risks becoming increasingly less competitive in the global shipping landscape. Additionally, American consumers end up paying for this inefficiency through increased import prices.

The ports of Los Angeles and Long Beach have led the way in implementing automation among U.S. ports. According to research conducted in 2022 by the Economic Roundtable of Los Angeles, which was commissioned by the West Coast dockworkers union, the introduction of partial automation at these California ports resulted in an annual loss of 572 jobs during 2020 and 2021.

However, data from 2015 to 2021 shows the workforce in the Los Angeles and Long Beach ports experienced an 11.2% growth, surpassing the 8.4% growth seen at other West Coast ports.

During this same period, the two automated terminals saw a significant 31.5% increase in paid hours, while non-automated terminals only experienced a 13.9% increase. The substantial difference in paid hours was attributed to efficiency improvements that allowed them to process more than twice the number of containers compared to their non-automated counterparts.