Trump supports ILA on port automation tussle

U.S. President-Elect Donald Trump met International Longshoremen’s Association (ILA) President Harold Daggett and Executive Vice President Dennis Daggett, and came out in support of port workers in their negotiations on automation with United States Maritime Alliance (USMX) representing carriers and port operators.

Posting on Truth Social after the meeting, Trump says: "There has been a lot of discussion having to do with automation on United States docks. I’ve studied automation, and know just about everything there is to know about it. The amount of money saved is nowhere near the distress, hurt and harm it causes for American Workers; in this case, our Longshoremen.

"Foreign companies have made a fortune in the U.S. by 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 on machinery, which is expensive, and which will constantly have to be replaced."

USMX, in its response, says: “We appreciate and value President-Elect Trump’s statement on the importance of American ports. It’s clear President-elect Trump, USMX and the ILA all share the goal of protecting and adding good-paying American jobs at our ports. But this contract goes beyond our 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."

Harold Daggett writes on Facebook: “I am so grateful to President Donald Trump for his courageous support for American ILA longshore workers. He totally understands the threat that automation and semi-automation has in destroying jobs and families. He has stood up for us in his strong statement against the foreign-owned ocean carriers pushing automation on American ports and then taking their billion-dollar profits back home with them.

“I hope this strong support from President Trump will encourage USMX to remove any language on automated or semi-automated equipment in their proposals moving forward, and we can get a new Master Contract without any disruptions."

Dennis Daggett shared ILA’s concern that America’s national security is threatened from cyber attacks on automated equipment from China and other U.S. adversaries - an issue Trump indicated was of great concern to him and his advisors.

Reactions to the development have been fast and furious: Derek Lossing, Founder, Cirrus Global Advisors writes on LinkedIn: "While we know for certainty that tweets often does not match future policy, nor does interviews or campaign promises, it seems that the next administration has taken a pretty firm stance on where they stand on one supply chain issue for 2025."

Container shipping expert Lars Jensen writes: "The conflict over automation in the U.S. East Coast ports is partly a battle over the narrative and is to be won in a political arena – and presently the ILA appears to be more adept at this than the employers at USMX. Shippers should take note of this fight. To the degree that lack of automation leads to a failure to increase efficiency this is a cost they will have to shoulder."

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Trump says that there's no gain for them (foreign carriers) in the end, "and I hope that they will understand how important an issue this is for me. For the great privilege of accessing our markets, these foreign companies should hire our incredible American workers, instead of laying them off, and sending those profits back to foreign countries. It is time to put AMERICA FIRST!"

USMX continues to highlight the importance of modern technology that is proven to improve worker safety, boost port efficiency, increase port capacity and strengthen 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.

“We look forward to working with the President-Elect and the incoming administration on how our members are working to support the strength and resilience of the U.S. 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.”

Challenges for 2025
The deadline for the talks is January 15, 2025 while Trump takes charge on January 20, 2025. Xeneta, in its earlier report, had highlighted five things to watch in 2025 along with the challenges of the first 32 days of 2025.

"In the first 32 days of 2025, shippers and freight forwarders will face the following:

* January 1: The Red Sea Crisis will reach more than 400 days of disruption, with a large-scale return of container ships to the region looking unlikely;

*January 15 – The end of the ILA port strike action suspension;

*January 20 – Inauguration of U.S. President Donald Trump, prompting the introduction of new and higher tariffs;

*January 24 – Russia and Ukraine will have been at war for 35 months;

*January 29– Start of Chinese Lunar New Year with factory shutdowns, demand and rates rising ahead of it, and supply chain disturbances expected until mid-February; and

*February 1 – Gemini and the Premier alliances come into effect, and with that, the dissolution of THE alliance and 2M.

The five key elements to watch include the U.S. market outlook, China to North Europe trade, the Transatlantic moves, demand and capacity dynamics and emissions and regulations.