Transportation Roundup: Maritime industry automation could be global crisis

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During the International Longshoremen’s Association (ILA) convention on Monday, President Harold J. Daggett expressed his displeasure with automation in the maritime industry. Automation efforts such as container tracking would eliminate jobs, which Daggett called a “global crisis that demands a global response.” The ILA is the largest union of maritime workers in North America, representing longshoremen on the Atlantic and Gulf Coasts, Great Lakes, major U.S. rivers, Puerto Rico and Canada. Read more about Daggett’s comments here.

July has been a rollercoaster for ports in Canada, starting with a strike by the International Longshore and Warehouse Union (ILWU) Canada. Union members are expected to vote on a tentative contract agreement later this week. The ports were shut down Tuesday morning for members to review the tentative deal. The strike has disrupted cargo handling at Vancouver and Prince Rupert, which are vital for both U.S. and Canadian markets. Read more here.

A column in the Journal of Commerce reminds us to consider the comparative base when saying demand and ocean freight waves have “collapsed.” While rates from Asia to the West Coast have dropped 86% since in their peak in late 2021, this comparison is skewed due to the pandemic supply chain crisis. If comparing rates from Asia to the West Coast in 2019, rates are actually 17% higher, which suggests the market hasn’t collapsed, only normalized. Read more here.