Talks between US ports and port worker representatives over a new labour contract have collapsed this week, raising the possibility of strike action at East and Gulf Coast terminals.

The International Longshoremen’s Association (ILA) has stopped negotiations with the US Maritime Alliance (USMX) over concerns about the use of automated technology to process trucks at port terminals without union labour.

The ILA believes that this use of automation breaches their agreement with USMX.

"The ILA today announced the suspension of talks with the USMX scheduled for Tuesday, June 11, 2024. This decision arises amidst ongoing negotiations of local agreements under the coast-wide Master Contract, set to expire on September 30, 2024," the group said in a statement.

"The ILA cancelled Master Contract talks with USMX after discovering that APM Terminals and Maersk Line are utilizing an Auto Gate system, which autonomously processes trucks without ILA labour," it added, noting that this system, initially identified at the Port of Mobile, Alabama, is reportedly being used in other ports as well.

A spokesperson for the ILA said," Here we go again! This is another example of USMX members unilaterally circumventing our coast-wide Master Contract. This is a clear violation of our agreement with USMX, and we will not tolerate it any longer."

Harold J. Daggett, the international president who serves as the union's chief negotiator, noted that "there's no point trying to negotiate a new agreement with USMX when one of its major companies continues to violate our current agreement with the sole aim of eliminating ILA jobs through automation."

The ILA added that it will not meet with USMX until the Auto Gate issue is resolved.

The ILA noted that it is monitoring and keenly aware of APM Terminals and Maersk Line's repeated attempts to circumvent the ILA-USMX Master Contract and cut ILA jobs through the introduction of automation and semi-automation equipment.

"Most of the problems the ILA is facing on the East and Gulf Coast all stem from APM Terminals and Maersk Line," the ILA added.

DSV cautioned of "potential strike concerns" for the US East and Gulf Coast Ports amid the suspended talks.

"Suspended labour talks caused by an automation issue lead to potential strike concerns," the freight forwarder said, adding that the ILA is the largest longshoreman union in North America, representing 85,000 members."

Its master contract with USMX is set to expire on September 30. The union had set May 17 as the cutoff date for local contracts to facilitate the master contract negotiations.

"DSV will continue monitoring the situation for any significant developments," it added.