Tags: port | automation | u.s. | global | trade

US Port Automation Critical to Stay Globally Competitive

US Port Automation Critical to Stay Globally Competitive
Container ships are docked at the Port of New York and New Jersey in Elizabeth, N.J. (Seth Wenig/AP)

By    |   Monday, 14 October 2024 12:07 PM EDT

As the nation breathes a sigh of relief following the brief strike by the International Longshoremen’s Association (ILA), the underlying issues remain unresolved and could escalate in the coming months.

While ILA leaders proudly highlight the significant pay increases, they secured for their members, they continue to strongly oppose the adoption of automation in U.S. ports. This resistance to technological progress is not only shortsighted and counterproductive but also threatens the future competitiveness of both the industry and the country.

In today’s economy, global trade powers growth, and the efficiency of our ports plays a crucial role in maintaining that flow. The economic stakes tied to automation at U.S. ports are immense.

These ports are not just entry points for goods; they serve as the critical arteries of global trade, connecting U.S. businesses to international markets. Ports are responsible for billions of dollars in trade and millions of jobs, but inefficiencies—many of which can be addressed through automation—are clogging these vital networks.

The recent ILA strike underscores a pivotal moment for the United States: should we embrace automation in our ports and shipping sectors, or risk falling behind nations that have already made the leap?

Chief among these competitors is China, which has embraced a technological revolution in its ports, using advanced automation to handle enormous volumes of global shipping with speed and precision. The choice is clear: if the U.S. continues to resist automation, it will not only face inefficiency but also jeopardize its status as a global trade leader.

China’s approach to automation underscores its understanding that competitiveness in global trade is built on speed, precision, and scalability. Through advanced systems that minimize congestion, optimize space, and reduce reliance on human labor, China’s ports have become the model for efficiency.

They are no longer just facilities for moving goods but have evolved into strategic economic hubs that fuel national growth, boost supply chain resilience, and solidify China’s global standing.

In contrast, U.S. ports are bogged down by outdated infrastructure and a lack of investment in automation. At many ports, ships wait for days to be unloaded, causing significant delays in the supply chain. These logistical bottlenecks, exacerbated by labor shortages and disputes, make U.S. ports inefficient, which increases shipping costs, slows deliveries, and diminishes the country’s ability to compete on the global stage.

A key reason for the slow adoption of automation in U.S. ports is the fear of job displacement. Workers, understandably, worry that automation will eliminate the well-paying, unionized jobs that have long been foundational in port operations. However, this concern overlooks a larger reality: automation redefines jobs rather than eliminating them. Just as containerization revolutionized port work decades ago, automation is the next step in the evolution of the shipping industry.

Instead of eliminating labor, automation shifts workers from physically demanding tasks to positions focused on managing, maintaining, and optimizing automated systems. This ultimately improves safety and working conditions while creating new opportunities for higher-skilled jobs.

Rather than viewing automation as a threat, union leaders should focus on how this technology can enhance their members' competitiveness and ensure that the U.S. ports meet the demands of modern trade.

Automation does not mean replacing all human workers; instead, it allows for hybrid operations where humans and machines work together to maximize efficiency. This transition will not happen overnight—it will take time, during which workers can be retrained and moved into safer, higher-skilled roles.

While concerns about job displacement are understandable, the greater risk is stagnation. As China and other global players continue to advance their automation capabilities, the U.S. faces a critical choice: adapt or fall behind. The consequences of failing to automate U.S. ports are significant.

Without automation, these ports risk becoming bottlenecks in the global supply chain, leading to higher costs, longer shipping times, and a loss of competitiveness for American businesses. As global trade accelerates, companies seeking efficient trade routes may bypass the U.S. altogether, contributing to economic decline.

To navigate this shift effectively, the U.S. must invest in retraining programs, forge partnerships with unions, and collaborate with the private sector to equip workers with the skills needed for the high-tech jobs of the future.

Automation in U.S. ports is no longer optional — it is essential. China’s success with automated ports demonstrates the clear economic benefits, from increased efficiency to reduced operational costs. The U.S. cannot afford to resist this transformation. Failing to embrace automation will result in slower, more expensive, and less competitive ports, ultimately hurting American workers and businesses alike.

It is time to move beyond the debate and start implementing the technology that will secure the United States’ position as a leader in global trade.

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Seth Denson is a Business & Market Analyst, Author, and Entrepreneur. He co-founded one of the nation’s most successful consulting firms and authored the best-selling book, The Cure: A Blueprint for Solving America’s Healthcare Crisis which takes a deep dive into the business structure of our U.S. healthcare system and how we can reform it while maintaining our free-market. As a regular on-camera contributor, Seth has garnered a national presence discussing a range of topics including business and economics, politics, faith, and fatherhood. Originally from West Texas but with international business experience, Seth’s ”no-bull” approach blends metropolitan thinking with good old-fashioned Texas straight-talk. Reads Seth Denson’s Reports.

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StreetTalk
As the nation breathes a sigh of relief following the brief strike by the International Longshoremen's Association (ILA), the underlying issues remain unresolved and could escalate in the coming months.
port, automation, u.s., global, trade
883
2024-07-14
Monday, 14 October 2024 12:07 PM
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