Since the onset of the COVID-19 pandemic, businesses and consumers have been made aware of how shipping delays impact their access to everything from electronics to food to medication. Geopolitical events such as the Russian invasion of Ukraine, Houthi shipping attacks and labor disruptions can also worsen the situation.
40Seas co-founder and COO Gil Shiff said major ports like Los Angeles and Long Beach have suffered for the past few years with labor shortages and logistical inefficiencies. Now, they are contending with an ILA strike of 45,000 workers who seek $5 per hour wage increases each year for the next six years.
Shiff said technology fears expressed by the union are misplaced.
“The current port strikes have been driven by workers seeking better pay and improved conditions, and the ILA is also seeking commitments to halt port automation projects it is concerned could replace jobs,” he explained. “However, there would be substantial efficiency gains to be made through innovative technology deployments.”
“There is definitely a middle road there where automation, AI-driven scheduling, and robotics could help reduce manual labor and address operational bottlenecks while also safeguarding jobs and making them less labor-intensive. By improving working conditions — such as reducing strenuous tasks and optimizing for safety — targeted tech-led initiatives could help resolve ongoing labor disputes. Perhaps not in their entirety, but it would be a good start.”
Shiff said these urgent times make a strong case for deploying AI, Internet of Things, and blockchain technology to address port efficiencies, enable predictive maintenance and real-time tracking, and streamline shipping. Considering the current state of flux across popular trade routes, AI-driven real-time monitoring would also represent a massive value-add, as AI-powered algorithms consider multiple variables, such as traffic, weather, and delivery schedules, to determine the most efficient routes for transportation.
There may be some movement to improved shipping and logistics technology, Shiff said.
“In recent months, efforts have been made to alleviate pressure at key US ports through increased investments in infrastructure and technology, with Governor Gavin Newsom’s administration in California recently announcing a $7.8 million grant to support the Port of Long Beach, a vital cargo delivery hub for the US. But based on this week’s port strike, a lot more needs to be done to improve worker sentiment.”
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