On Thursday, Trump issued a statement on Truth Social emphasizing that investments in port automation are not worth the harm they cause to American workers, particularly longshoremen. He suggested that terminal operators and ocean carriers should redirect funds intended for automation to support the workforce. Trump stated that machinery is both costly and subject to ongoing replacement, arguing that the focus should instead be on the men and women working on U.S. docks.
The statement followed a two-hour meeting Trump held with ILA President Harold Daggett and Executive Vice President Dennis Daggett, marking the second meeting Trump has had with ILA leadership. Harold Daggett previously met with Trump in November 2023 during his candidacy. Trump’s remarks echoed key points raised by the ILA in its negotiations with the United States Maritime Alliance (USMX) for a new six-year master contract covering ports along the East and Gulf coasts. Trump criticized ocean carriers for their substantial profits in the U.S. market, noting ILA estimates that USMX’s top container lines amassed $385 billion in net profit from 2020 to 2023. Trump called on these companies to prioritize hiring American workers in recognition of their access to U.S. markets.
Harold Daggett expressed gratitude for Trump’s support, describing it as a courageous stand for American ILA workers. Daggett stated that Trump’s position could help resolve the impasse in negotiations, which has centered on the inclusion of language permitting semi-automation at ports. The ILA halted further discussions with the USMX after agreeing to a contract extension set to expire on January 15, citing the employers’ insistence on retaining such provisions. Daggett expressed hope that Trump’s intervention would lead to the removal of automation-related language from contract proposals, enabling the finalization of a new master contract without disruptions.
The USMX responded by emphasizing the importance of technology investments in improving worker safety, enhancing port efficiency, expanding capacity, and strengthening supply chains. It noted that efficient port operations are vital to the broader economy, impacting a range of stakeholders beyond the immediate parties involved in the negotiations. The alliance highlighted shared goals of protecting and creating high-paying American jobs, while ensuring that U.S. ports remain capable of meeting the needs of businesses and consumers.
Recent data from Freightos, a shipping data analytics firm, indicated that ocean container rates on trans-Pacific routes to the U.S. have risen, reflecting increased demand. Asia-U.S. West Coast rates increased by 4% to $4,452 per forty-foot equivalent unit (FEU), while Asia-U.S. East Coast rates rose by 2% to $5,932 per FEU. Analysts attributed this trend to shippers pulling forward volumes ahead of anticipated tariff increases under the Trump administration. Freightos research chief Judah Levine suggested that pre-Lunar New Year demand in January could further support rate hikes, with carriers planning general rate increases (GRIs) of $1,000 to $3,000 per FEU.
Despite these increases, U.S. port operations have remained smooth, with operators reporting readiness for additional volume. However, the prospect of a strike at East Coast ports in January could disrupt trans-Atlantic shipping. Some carriers have already announced disruption surcharges, anticipating potential labor actions and an upcoming February alliance reshuffle.
Meanwhile, Asia-Europe and Asia-Mediterranean container rates have eased slightly from earlier December levels, with decreases ranging from 3% to 7%. Bad weather and moderate congestion at European ports have impacted schedules, but rates remain significantly higher than a year ago, driven in part by Red Sea diversions caused by regional security concerns. Despite increased military actions by Israel and the U.S. targeting Houthi positions, maritime security in the area remains uncertain.
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