With the presidential election approaching, the implications of the strike were a concern for the Biden administration. Key ports, such as Wilmington and Baltimore, play crucial roles in U.S. imports, and the strike threatened to complicate economic narratives as election campaigns intensified. As Dodwell notes, the strike raised questions about international trade and U.S. economic self-reliance, with the trade deficit reaching $773 billion last year.
The agreement to end the strike was announced on Thursday, with dockworkers accepting a 62% wage increase. However, discussions about key issues, particularly port automation, have been postponed until January 15, after the election. Dodwell points out that while President Biden had the legal authority to intervene, he chose to avoid taking action, fearing backlash from union supporters at this critical time.
Longshoremen are among the better-paid workers in the U.S., with average salaries around $80,000, and some earning over $200,000 with overtime. ILA President Harold Daggett, who earns over $900,000 annually, criticized major shipping companies for their profits and called for fair negotiations, as reported by Dodwell.
Despite the resolution of the strike, concerns remain regarding automation in ports. U.S. ports lag behind automated ports globally, with productivity rates significantly lower than those in China. For example, Dodwell highlights that China's Yangshan Port operates at over 113 containers per hour, while New York Port handles 57.8 and Oakland Port just 25.
The ILA has voiced opposition to further automation, fearing job losses and economic impacts on local communities. In the current political climate, there are heightened concerns about the security implications of relying on Chinese companies for port automation equipment.
As negotiations resume in January, the push for restrictions on automation will likely be a key topic, potentially requiring concessions from port operators. The outcomes of these discussions will be crucial for the future of East Coast ports in the coming years.