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Port Automation and Payroll Fraud



January 13, 2025

East and Gulf Coast port workers were set to go on strike again on January 15, 2025, had an agreement
not been reached with their employers over automated cargo handling equipment. The January 9, 2025,
agreement reportedly will extend the current contract language concerning automation for another six
years; details have not been disclosed publicly. Current language reportedly allows some automation
equipment to be introduced as long as it is accompanied by paid job positions. In October 2024, a three-
day strike was resolved with a 62% wage increase for port workers over the next six years. Congress has
specified that a new federal grant program for purchasing zero emission port equipment can be used only
for human-operated or human-maintained equipment (P.L. 117-169, §60102).
Several U.S. container ports are partially automated. Automated equipment refers to remote controlled
cranes for loading and unloading ships, driverless vehicles that move shipping containers between a port's
dock and staging areas, automated container stacking cranes, and unmanned gates where trucks enter and
exit the port. Automated equipment is capital intensive. It is intended to speed cargo flow for the much
larger container ships now calling at U.S. ports. In 2015, Panama finished constructing a wider, deeper
canal that can accommodate ships with a 50-foot draft and has capacity to carry three times more
containers than previously. Aided with federal funds, many East and Gulf Coast ports have since
deepened their harbors, with some raising the height of bridges over the shipping channel to allow bigger
ships to pass underneath. U.S. container ports are not ranked highly worldwide for their speed and
efficiency of handling cargo. In response to the historic port congestion during the COVID-19 pandemic,
one recommendation  was to shift to 24/7 operation of U.S. ports.
The International Longshoremen's Association (ILA) represents over 47,000 longshoremen at East and
Gulf Coast ports who handle containerized cargo and car carrier ships carrying automobiles. The U.S.
Maritime Alliance, Ltd. represents the ocean carriers and port terminal operators, the employers. In 2022,
East and Gulf Coast seaports accounted for 60% of the import and export containers shipped through U.S.
seaports (West Coast seaports accounted for 40%). That year, East and Gulf Coast seaports accounted for
15 of the top 20 U.S. container ports. Containers carry a wide assortment of goods. Retail goods and
manufacturing parts tend to comprise a large share of imported containers; U.S. exports often consist of
intermediate goods and agricultural items.
A focus of recent negotiations, and likely of future labor negotiations on both coasts, is automation. ILA
argues automation will reduce port jobs. Some others cite instances where automation increased jobs after
automation increased the number of containers handled and therefore the number of workers needed.
                                                                   Congressional Research Service
                                                                   https://crsreports.congress.gov
                                                                                         IN12483

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