News / Trump backs ILA campaign against 'distress-causing' automation in ports

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As Donald Trump weighs into the US port automation row, The Loadstar readers will discover next week – when we begin our series on port automation – that the issue is both complex and nuanced.

Nevertheless, a new war of words has broken out, which appears to pit US longshore workers against US shippers.

Following a meeting yesterday at Mar-A-Lago between ILA union leaders Harold and Dennis Daggett and Mr Trump, the president-elect issued a statement backing the longshore workers, asserting “America First” over “foreign companies”.

But the port employer association, USMX, immediately hit back, arguing that US businesses and consumers would be the ones affected by lack of productivity at US ports.

Mr Trump last night noted on his social media platform that the amount of money that could be saved by port automation “is nowhere near the distress, hurt  and harm it causes for American workers, in this case, our longshoremen”.

He added: “Foreign companies have made a fortune in the US by [us] giving them access to our markets. They shouldn’t be looking for every last penny knowing how many families are hurt. They’ve got record profits, and I’d rather these foreign companies spend it on the great men and women on our docks  than machinery, which is expensive and which will constantly have to be replaced. In the end, there’s no gain for them…”

But USMX pointed out that the contracts go beyond the ports – and implied that ‘America first’ should also include its own businesses relying on well-functioning ports.

“It is about supporting American consumers and giving American businesses access to the global marketplace – from farmers, to manufacturers, to small businesses and innovative start-ups looking for new markets to sell their products.

“To achieve this, we need modern technology that is proven to improve worker safety, boost port efficiency, increase port capacity and strengthen our supply chains. ILA members’ compensation increases with the more goods they move – the greater capacity our ports have and goods that are moved means more money in their pockets.”

But Mr Trump noted that he’d “studied automation, and know just about everything there is to know about it”.

He may not need to read it, but in our series next week we will reveal the impacts on labour, as well as pros and cons of automation.

“Rather than reducing labour costs, automation’s benefits seem to be more centred around greater density, higher stack height and a higher number of container moves, overall,” we will say next week.

One of the main arguments for automation is the ability to gain more container moves without expanding a port’s footprint.

“It is hoped that automation will address one of the most significant needs facing brownfield ports in the 21st century – densification. With little prospect of acquiring more land for additional yard space, ports must look to stack containers higher, and closer together. This means administering blocks or stacks with a greater number of machines; and either hiring additional port staff, or using increasingly automated fleets of vehicles and cranes.”

There are concerns over labour, as well, however, but it depends on several factors, as we will show.

The USMX said it was looking forward to working with Mr Trump to “support the strength and resilience of the US supply chain and making crucial investments that support ILA members and millions of workers and businesses across the entire domestic supply chain, improving efficiency and creating even more high-paying jobs for ILA members”.

But ILA president Harold Daggett countered: “I hope this strong support from President Trump will encourage USMX to remove any language on automated or semi-automated equipment in their proposals, and we can get a new master contract without any disruptions.”

The Loadstar’s short series on port automation will begin on Monday