The Heart of the 2024 Port Strike Crisis

“Automation will soon touch nearly every aspect of our daily lives. From production lines to transport to the food on our plates, robots and algorithms will soon be working behind the scenes.” 

Today, most of us would read the above sentiment and shrug it off without so much as a second thought.

Yet these prophetic words weren’t written a few days, or even a couple of years ago. I’d even wager that many of the veteran members of our investment community have long forgotten about it.

Truth is, they were written on the pages of Energy and Capital more than 10 years ago. We knew then that one of the most disruptive technologies of our lifetime would be automation — and one of the most profitable! 

Had I known then what I know now, it would have me lying awake at night. Few other technologies have permeated into our daily lives as much as industrial automation. 

All it took was simply a matter of time. 

The 2024 Port Strike Crisis

You know the fear that comes from a fully automated society as well as I do.

Since 2000, nearly 2 million jobs have been lost in the manufacturing sector to industrial robots. Perhaps the most recognizable disruptions were from Big Tech players like Amazon, a company that has been building fully autonomous warehouse robots for years. 

But this disruption goes far beyond warehouses, because automation is at the heart of one of the most potentially destructive strikes in history. 

It’s happening at ports all along the East Coast and the Gulf of Mexico. 

Last night when the clock struck midnight, a union contract representing over 70,000 dockworkers expired. As I write this now, there are still a few hours to cut a deal before the deadline hits. 

Barring some last minute deal, the International Longshoremen’s Association and the United States Maritime Alliance will have its members walk off the job, pick up their posters and hit the picket line. 

This isn’t small potatoes

Billions of dollars in trade passes through the 36 ports that would be shuttered. A recent calculation out of JP Morgan suggests that these ports handle roughly one-half  U.S. ocean imports and cost the U.S. economy about $5 billion on a daily basis. 

At the heart of their grievances isn’t just more pay, but the growing move toward automation.

It’s the fear that people have been dreading for more than a decade — and for good reason, too. The shift to automated ports isn’t a new concept or trend. ECT opened the world’s first automated container terminal in the world back in 1993!

If we take a look at the ten largest U.S. container ports in the United States, we’d find automation technology in every single one, whether it’s to track container shipments, or automated equipment that handles the loading, unloading, and transportation of the containers. 

Along with better pay, the unions are asking that a ban be placed on automation technology, and this was a huge sticking point when talks took place last June. Ultimately, the negotiations broke down over it. 

Whether a last-minute deal was reached or not, this crisis won’t be the last time we see this kind of massive disruption — this is just the beginning.

And at some point, you might have to ask yourself whether or not we’ll be able to stop our societal shift to automation technology. 

So far, the answer is a resounding: No!

If you’ve come to that conclusion as well, then what’s coming next will really blow your mind… I suggest you take a few moments out of your day and check this one out for yourself.