What is automation and why is it so important to ports?
The term “container port automation” refers to the implementation of automated systems with the objective of managing the movement of containers within a port or terminal. The underlying rationale is that such systems can enhance efficiency and productivity by reducing the time and cost associated with manual handling processes.
The use of automated cargo handling equipment reduces the need for human involvement in the physical loading, unloading, or movement of containers within the terminal. To illustrate, an automated gantry crane is capable of both stacking and transporting containers to a truck or train. Automated gantry cranes may be operated either by software or by a worker situated in a remote location, who is responsible for guiding containers onto a truck chassis or train. This contrasts with the conventional approach, which relies on an operator on the crane to move containers.
Port management’s point of view on semi and full automation at ports
Port management anticipates that container handling processes at ports will become more efficient with the introduction of semi and full automation, allowing for an increased number of containers to be handled in a shorter time. This is expected to enhance productivity and contribute to a boost in economic value added to the U.S. economy.
A study conducted by Dr. Michael Nacht, Professor of Public Policy at the University of California, Berkeley, and a former Assistant Secretary of Defense, and Larry Henry, Founder of ContainerTrac, found that an increase in automation at the two semi-automated terminals at the ports of Long Beach and Los Angeles, in California, resulted in a net gain of jobs for the International Longshore and Warehouse Union.
What do trade unions and employees thinks about semi and full automation?
On the other hand, ILA president Harold Daggett is one of the voices with the loudest opposition to semi and full automation at ports. Daggett has expressed his opposition to the installation of cameras at ports and on roads to monitor truck movements.
He also called semi-automation a “back-avenue into automation.”
In a recent video message to union members, shared during the September meeting, Dennis Daggett, executive vice president of the ILA and son of Harold Daggett, described automation as a “cancer” in the port industry.
In conclusion, employees and the ILA have highlighted their concern that as the ports progress towards semi and then full automation, the necessity for personnel may diminish, potentially leading to an increase in redundancies. Conversely, it is predicted that the introduction of automated systems will result in an increase in container-handling capacity at the ports, which will have the effect of maintaining the current labor force and improving overall remuneration.
What challenges might American ports face over the subsequent two-month period?
In the event of unsuccessful negotiations regarding the implementation of semi and full automation systems, the International Union of Port Workers, which represents 45,000 members, may resort to another strike.
A previous strike by dockworkers resulted in a significant economic impact, with an estimated loss of $4.5 billion per day and an associated increase in inflation. Should a strike resume, it is possible that the figures will increase, which may in turn lead to an uptick in inflation.
Ports handle over 68% of the country’s imports, with port workers likely to go on strike. Disruptions in the supply chain are expected to affect retailers who rely on port deliveries, pushing up customer prices. However, we can expect to see the economic effects in the following months.
A potential strike at the ports would have a significant impact on the U.S. economy.
Negotiations between port authorities and the ILA on this matter are likely to continue beyond the January 15th deadline previously set for negotiations. It is unlikely that neither the port authorities , the ILA, or the newly elected U.S. government will be able to afford a prolonged strike. However, with the guarantees that the U.S. government will provide to the workers, it seems probable that the parties will finally agree on a reasonable framework.
