The Apparel and Footwear Industries Call for The Resumption of U.S. Port Labour Talks

While the ILA warns of job losses, employers and industry groups argue that automation is crucial for U.S. ports to remain competitive. Adding complexity to the ongoing tension, President-elect Donald Trump voiced his stance against automation.

The American Apparel & Footwear Association (AAFA) has called for the immediate resumption of stalled U.S. port labour talks and urged both parties to resolve the dispute affecting the operation of critical trade hubs.

Negotiations between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX)—representing container carriers, direct employers, and port associations for the East and Gulf Coasts—reached an impasse in November.

Both parties disagree on implementing semi-automated equipment at East and Gulf Coast ports.

The ILA opposes automation, arguing it threatens dockworker livelihoods. Meanwhile, employers insist automation is necessary.

According to the AAFA, automation can significantly improve capacity while reducing bottlenecks and vessel turnaround times. That’s why the organization supports the need for automation for U.S. ports to compete globally.

The apparel and footwear industries, in particular, rely heavily on timely imports to meet consumer demand. Prolonged delays could severely disrupt their supply chains.

“Any delay in reaching an agreement would add unnecessary strain to an already fragile supply chain,” said AAFA CEO Steve Lamar. “The apparel and footwear industries cannot afford further uncertainty at this critical time.”

Why automation is in the spotlight

The competitiveness of U.S. ports has recently become under scrutiny. Fully automated ports in Europe and Asia have demonstrated the efficiency gains possible with modern technology, such as handling larger cargo volumes with fewer delays.

In contrast, U.S. ports have struggled with aging infrastructure and slower adoption of automation, which puts them at a disadvantage in the global trade market.

“The apparel and footwear industry relies on the seamless movement of goods to meet consumer demand,” Lamar added. “Port automation is not about replacing jobs but about ensuring we stay competitive globally and create opportunities in other areas of the supply chain.”

A recent FreightWaves analysis showed that automation could also help address the ongoing labour shortages that have plagued the logistics industry.

But striking a balance between technological progress and protecting jobs remains a key issue in the ongoing U.S. port labour talks. Labour unions insist on pushing back against changes that could threaten jobs.

Automation divides dockworkers and employers

The breakdown in negotiations between the ILA and USMX stems from fears among dockworkers that automation could lead to significant job losses.

ILA President Harold Daggett has publicly opposed port automation, stating that it’s a “threat to livelihoods” that would “undermine the security of thousands of longshoremen.”

Meanwhile, USMX counters that automation is necessary to address growing cargo volumes and ensure the long-term sustainability of U.S. ports.

The USMX stated, “Port operations must evolve, and embracing modern technology is critical to this evolution.”

“It means improving performance to move more cargo more efficiently through existing facilities – advancements that are crucial for U.S. workers, consumers, and companies.”

The solution now is for both parties to collaborate.

“We need to ensure the workforce is part of the transition, with opportunities for retraining and upskilling to adapt to a modernized port environment,” Lamar stated.

Trump supports dockworkers in labour standoff

The stalled U.S. port labour talks have now taken a political turn, with President-elect Donald Trump expressing strong support for the ILA. Trump sided with the union and criticized port automation while calling for the protection of American jobs.

Trump stated, “We don’t need more automation. What we need are jobs for American workers.”

He framed automation as a direct threat to working families and urged port employers to prioritize the workforce over technology.

Trump’s support has added a layer of complexity to the negotiations, with industry groups like the AAFA stressing that automation is essential for the long-term viability of U.S. ports.

However, the ILA has welcomed Trump’s comments as validation of their stance.

For more information about the impact of the ongoing automation talks on your imports, please reach out to one of our trade professionals.