The automation of port operations has once again come under scrutiny following the strike by the International Longshoremen’s Association (ILA) that began on October 1, 2024. The strike, involving 45,000 union workers, threatens to disrupt operations at 14 major East and Gulf Coast ports, which account for more than half of all U.S. containerized cargo. This ongoing dispute highlights the long-standing tension between labour and management regarding the role of automation in the maritime industry.
The Debate Over Automation
Automation has been a contentious issue in the maritime industry for years. While proponents argue that advanced technologies can enhance efficiency and reduce costs, unions like the ILA and the International Longshore and Warehouse Union (ILWU) have raised concerns about the potential displacement of workers. These labour unions have fought against automation, citing fears that it could eliminate jobs and harm local economies. However, as global supply chains increasingly adopt automation, unions face an uphill battle to halt the progress of these technologies.
Conflicting Research on Automation’s Impact
Research on the impact of automation on jobs has produced mixed results. A study commissioned by the Pacific Maritime Association (PMA) in 2022 suggested that automation has not reduced job opportunities and has provided benefits for shippers, consumers, and the environment. In contrast, a report by the Economic Roundtable, commissioned by the ILWU, found that automation at two California shipping terminals had eliminated nearly 5% of jobs.
The reality likely lies somewhere in between, as the U.S. Government Accountability Office (GAO) report from March 2024 highlights the complexity of the issue. The GAO found that the effects of automation vary depending on the terminal operator, port volumes, and labour agreements, and that automation doesn’t always lead to increased productivity.
The Role of Process and Cargo Handling Automation
Port automation typically involves two types of technologies: process automation and automated cargo handling equipment. Process automation technologies reduce the need for human involvement in tracking and communicating container movements, while automated cargo handling equipment, such as gantry cranes, physically loads and unloads containers.
Although many U.S. ports have adopted some form of automation, they lag behind foreign ports, which have more extensively integrated advanced technologies like digital twins and blockchain.
Future Prospects for Port Automation
As the standoff between the ILA and the U.S. Maritime Alliance (USMX) continues, the future of automation at U.S. ports remains uncertain. While automation has the potential to increase efficiency, reduce worker injuries, and lower greenhouse gas emissions, it is not a guaranteed solution for all challenges facing ports.
Ultimately, finding a balance between technological advancements and protecting the jobs of workers will require ongoing collaboration between labour unions, management, and policymakers.
Did you Subscribe to our daily newsletter?
It’s Free Click here to Subscribe!
Source: SUPPLY CHAIN BRAIN
