Port Price Strife: East Coast Automation Showdown Looms

Facing potential strike action from dockworkers, U.S. shippers are avoiding East and Gulf Coast ports. The main contention between the ILA union and employers is automation, despite a previous wage agreement. Companies are rerouting to avoid disruptions, impacting port operations and domestic supply chains.

U.S. shippers are sidestepping East and Gulf Coast ports as fears grow that the 45,000 dockworkers may strike again if their union leader fails to secure a new contract by the January 15 deadline. The heart of the dispute between the International Longshoremen's Association (ILA) and the United States Maritime Alliance (USMX) is automation.

After a three-day October strike, a tentative wage agreement was reached, but automation remains unsolved, viewed by unions as a threat to jobs and by employers as a profitability strategy. Chris Peterson of Newell Brands is among those rerouting shipments to the West Coast amid concerns of potential labor disruptions.

Skepticism persists among shippers over a resolution without further strikes at key ports like New York, New Jersey, Houston, and Savannah. With automation as a significant sticking point, a second strike looms large, potentially disrupting ports already burdened with post-strike cargo backlogs.

(With inputs from agencies.)