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US Port Workers Strike, Golden Age of Sail Returns? Can AI Help?

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US Port Workers Strike, Golden Age of Sail Returns? Can AI Help?

Dockworkers along the U.S. East Coast and Gulf of Mexico began the first large-scale strike in nearly 50 years on Tuesday, 10/1, sparking concerns of renewed inflation.

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US Dockworkers Launch Historic Strike

According to a report by Reuters, dockworkers along the U.S. East Coast and Gulf of Mexico began the largest strike in nearly 50 years on Tuesday, October 1, causing about half of the country's maritime shipping to come to a halt.

Analysts warn that the strike will disrupt food and automotive transportation at dozens of ports from Maine to Texas, resulting in billions of dollars in economic losses per day and potentially threatening jobs and triggering inflation.

The International Longshoremen's Association (ILA), representing 45,000 port workers, had been negotiating a new six-year contract with the United States Maritime Alliance (USMX) employers' group until the midnight deadline on Monday, but the failure to reach an agreement led to the large-scale strike. ILA leader Harold Daggett stated that the employers did not offer adequate wage increases and did not agree to the demand to halt the port automation plans that threaten jobs.

Is the "Age of Sail" Returning?

J.P. Morgan analysts estimate that the strike could cost the U.S. economy about $5 billion per day. A prolonged strike could also bring political risks, especially concerning the inflation issue, which has been a major concern for the Biden administration.

President Biden stated that they would not use federal power to end the strike, but pressured the employers to raise contract offers to reach an agreement. White House Press Secretary Karine Jean-Pierre stated, "Since the pandemic, profits for shipping companies have hit record highs, with profits in some cases rising by over 800%. It is only fair that the wages of workers who risked keeping ports open during the pandemic see meaningful increases."

This strike marks the first major strike by ILA since 1977, causing concerns for businesses relying on shipping exports or ensuring critical imports. The world's third-largest container shipping company, France's CMA CGM Group, has issued a force majeure notice for this strike and indicated that additional fees may be charged for delayed vessels.

Will the "Age of Sail" return with container costs already on the rise due to the pandemic?

AI Automated Shipping: Still Need Human Labor?

Billionaire investor and founder of Pershing Square Capital, Bill Ackman, shared a video on Twitter showing workers at Guangzhou Port in China using 5G remote unloading and AI trucks automatically loading containers onto trucks without human assistance. This development raises irony under the backdrop of U.S. workers' call to halt port automation plans threatening jobs.