Talks between the International Longshoremen's Association (ILA), the container terminal workers' union at the US East Coast and Gulf Coast ports, and the United States Maritime Union (USMX), which represents management, have broken down. The breakdown in talks centred on Maersk's move to install automated equipment at some ports in an attempt to replace workers. The ILA accused Maersk of using automated systems to handle truck operations at its terminal in Mobile, Alabama, without the use of workers, in what it called a clear violation of the agreement.

    The breakdown of the talks, less than four months before the expiry of a six-year labor contract between the two sides on Sept. 30, has heightened labor tensions at U.S. Eastern ports and raised the risk of a strike. The labor contract covers about 45,000 longshoremen along the East Coast from Boston to Houston, including six of the nation's 10 busiest ports.

    Global shipping rates have risen to their highest since the coronavirus pandemic as some routes have been disrupted. Now, labor unrest at eastern ports is further straining the shipping industry.

    CNBC pointed out that with the post-epidemic recovery and high inflation, labor protests in ports in the United States and around the world have intensified. The breakdown of negotiations has highlighted the issue of terminal automation, namely the potential threat of automation technology to the jobs of dockworkers.

    The International Longshoremen's Association (ILA) said in a press release on Monday that all New Covenant negotiations scheduled for this week have been suspended. The union said it found that Maersk, the world's second-largest shipping company and the parent company of APM's terminal operator, used automated systems to handle truck operations at its terminal in Mobile Port, Alabama, without the use of workers. Unionists believe that automation technology is being used not only at Mobile but also at other ports.

    Harold Daggett, president of the ILA, said they cannot tolerate blatant violations of existing agreements by the management during negotiations, especially when they are trying to negotiate a new covenant with the USMX. He stressed that Maersk, as the parent company of the APM terminal operator, has only one purpose in using the automated system at the Mobile port, which is to eliminate ILA jobs through automation.

    Maersk, however, responded in an emailed press release that the APM terminal's operations had been in compliance with the terms of the contract between the two parties, and expressed disappointment that ILA had deliberately nitpicked details to create more bargaining leverage. They said they would continue to communicate with relevant parties to resolve concerns.

    The ILA is the largest longshoremen's union in North America, with 85,000 members. In the past, East Coast ports have not seen as much strife as those on the West Coast, but the breakdown in talks and the potential strike crisis have put industrial relations in the region to a major test. The last strike at East Coast ports was in 1977.