The International Longshoremen’s Association (ILA) has vowed to escalate its fight against automation, as the fallout from last week’s three-day strike continues to ripple through supply chains. The strike, which saw major ports along the US East and Gulf coasts grind to a halt, has left behind significant congestion and disruptions that may persist until the end of the month. Around 50 vessels remain stranded at anchor, awaiting clearance to load or unload cargo.
While the ILA negotiated an “unprecedented” 61.5% wage increase across six years, the union has opted to defer acceptance. The reason? A no-strike clause tied to the wage deal, which would limit the union’s ability to address deeper issues like job security and port automation. By extending their labour contract until 15 January, the union maintains leverage to battle automation’s encroachment on longshoremen jobs, a key sticking point in negotiations.
The ILA’s resistance to port automation presents a significant obstacle, especially as automation continues to play an increasing role in improving port efficiency and modernisation. Many global ports are already too far advanced in adopting automated machinery. The union, however, is determined to ensure that ILA members continue to handle critical tasks such as manning cranes and servicing port equipment—tasks they fear could be outsourced to non-union workers or fully automated systems.
Meanwhile, the impacts of the strike are being felt far and wide. Major carriers, including CMA CGM, MSC, Hapag-Lloyd, and Maersk, have taken steps to mitigate the disruption. CMA CGM has adopted a first-in, first-out policy for vessels and suspended its local port charge. MSC has suspended its Emergency Operations Surcharge on east and Gulf coast exports, while Hapag-Lloyd has extended detention-free time and rerouted cargo to alternate ports to minimise delays. Maersk, on the other hand, has temporarily halted bookings for export refrigerated containers via ILA-affected ports.
Real-Time Data: A Critical Tool for Navigating Supply Chain Disruptions
With severe vessel bunching and potential long-term delays looming, the strike highlights the urgent need for Beneficial Cargo Owners (BCOs) and logistics service providers (LSPs) to gain real-time visibility into their supply chains. Real-time data insights allow businesses to make crucial, data-driven decisions that can mitigate the impact of such disruptions. Whether it’s identifying alternative routes, managing inventory, or adapting to climate-related challenges, access to real-time data can help companies react quickly and maintain business continuity.
Supply chain visibility software, powered by real-time data, is no longer a luxury—it’s a necessity. Especially in the current climate of port disruptions, automation debates, and global trade volatility, BCOs and LSPs require actionable insights to ensure resilience. As the January negotiation deadline approaches—a period coinciding with heightened pre-Chinese New Year demand—the ability to predict and plan for potential backlogs will be paramount in navigating the challenges ahead.
This ongoing conflict between automation and labour protections, coupled with escalating port disruptions, serves as a stark reminder of the importance of supply chain agility and visibility. As we move toward the future of modern logistics, the implementation of real-time data solutions will become even more critical for maintaining an efficient and sustainable global supply chain.