Trump Backs Dockworkers in Automation Dispute as Port Contract Deadline Looms

The ongoing contract negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have taken a new turn with President-elect Donald Trump’s recent involvement. On December 12, 2024, Trump met with ILA leadership, including President Harold Daggett, and expressed strong support for the union’s stance against port automation.

In a post on his Truth Social platform, Trump stated, “I’ve studied automation, and know just about everything there is to know about it. The amount of money saved is nowhere near the distress, hurt, and harm it causes for American Workers, in this case, our Longshoremen.” This statement aligns closely with the ILA’s position, which has been a major sticking point in negotiations with USMX.

The meeting comes at a critical time, as the current contract extension is set to expire on January 15, 2025, just five days before Trump’s second inauguration. This deadline was established after a three-day strike in October 2024, which was partially resolved with the help of the Biden administration.

Negotiations At Impasse Over Automation

In early October after a brief walkout, ILA members agreed to a 62% pay increase over the six-year agreement’s lifetime, but left the automation issue unsettled.

In November, the employers and ILA scheduled four days of contract talks. Those talks abruptly broke down after only two days over the issue of automation. The ILA reported that negotiations ended when management introduced their intent to implement semi-automation, which the union views as a direct contradiction to earlier assurances. The union fears that even the slightest concession to semi-automation is a stepping stone to full automation, potentially leading to significant job losses..

USMX, on the other hand, argues that modernization is essential for improving worker safety, boosting port efficiency, and increasing capacity. They claim that greater port capacity would lead to more goods being moved, ultimately resulting in higher compensation for ILA members. 

East Coast and Gulf TEU Figures

The stakes are high, given the significant volume of cargo handled by east and gulf coast ports. In 2023, the world’s top 20 ports, including several on the U.S. east coast, handled a cumulative traffic of 387.5 million TEUs, up 1.24% from the previous year. Specifically, during the first seven months of 2024, those ports handled 50.8% of total imports measured in TEU through the country’s top 10 ports.

Any interruption in January ahead of the two-fold rush of cargo leaving Asia both in advance of Lunar New Year closures and to potentially beat any additional tariffs the administration might seek to impose would likely both lead to congestion and higher rates for vessels bound for west coast ports as well as delays in unloading cargo on services that are only calling on the eastern seaboard or gulf.

What’s Next With Less Than A Month Remaining?

USMX has responded to Trump’s comments with a statement emphasizing their shared goal of protecting American jobs while also stressing the need for modernization to maintain competitiveness.

Trump’s support for the ILA could influence the negotiations, potentially emboldening the union in its stance against automation. However, it remains to be seen how this will play out in practical terms, especially given the complex economic and technological factors at play.

Future Forwarding continues to monitor these negotiations closely. With Savannah just up the road from our U.S. headquarters in Atlanta, Georgia, we are attuned to the situation and are working with individual customers on contingency plans that include alternate ports of call, transshipment of urgent cargo and, if necessary, air freight options. If you have any questions, contact your Future Forwarding representative or schedule a call with a member of our sales team to explore your shipping options.