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Autonomous ports: Growing tension between automation and dock workers

Some studies highlight ports as the perfect pilot tests for automation, but there are growing concerns over job loss.

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Quantumrun Foresight
September 13, 2022

Insight summary

The drive to fully automate seaports globally signals a major change in global logistics, with many ports already advancing towards automation to enhance efficiency and reduce costs. However, this trend raises concerns, particularly among port workers, about job security and the need for new skills, prompting calls for government intervention and policy changes. The long-term implications include 24/7 operations, seamless integration with over-land and last-mile delivery automation, and heightened cybersecurity demands.

Autonomous ports context

Plans to transform and fully automate seaports worldwide are gaining momentum in the 2020s. Research firm McKinsey highlights that compared to other sectors like mining and warehousing, port automation has been slower to develop. A significant survey conducted by McKinsey in 2017 uncovered that a large majority, 80 percent, of freight shipping experts predicted their port operations would be either partially or entirely automated in the next five years. These experts also expected a substantial decrease in operating costs, including labor, by as much as 55 percent, alongside an increase in productivity ranging from 10 to 35 percent.

The movement towards automation in ports is not without its challenges and complexities. By 2018, around USD $10 billion had been invested in automation initiatives, with approximately 40 ports globally having already implemented partial or complete automation. One of the central focuses of this shift is the automation of container ports, which involves the use of unmanned trucks and cranes. According to McKinsey, a fully automated port, referred to as Port 4.0, would operate using advanced technologies like the Industrial Internet of Things (IIoT), extensive data management, and artificial intelligence (AI) systems.

Some ports are already making progress in this area. In June 2023,

the UK's premier container port, the Port of Felixstowe, was reported to become the first in Europe to deploy battery-operated, AI-controlled autonomous trucks. Hutchison Ports, overseeing the Port of Felixstowe, has ordered 100 Q-Trucks, marking a progressive phase in their five-year joint effort to integrate autonomous vehicles into regular commercial activities.

Disruptive impact

The evolution of port automation, as demonstrated by the northern Chinese city of Caofeidian, which in 2018 became the first to achieve full automation, marks a significant shift in global trade logistics. Utilizing driverless tractors and cranes, this port can handle an immense volume of cargo, transferring up to 300,000 twenty-foot equivalent units (TEU) daily. This achievement, powered by the technology from local startup TuSimple, showcases the efficiency of automation in environments like ports, which are isolated and have predictable, pedestrian-free operations.

However, the transition to automation in ports has sparked substantial concern among port employees worldwide. The pushback from labor unions is exemplified by the events at the Port of Vancouver in 2019, where the initiation of a decade-long automation project led to strikes by members of the International Longshore and Warehouse Union (ILWU). The ILWU's stance is not against automation per se but centers on the lack of measures to secure jobs for existing workers. Their call for Canadian regulators to limit automation reflects a broader concern among workers in various industries facing similar technological transitions.

Looking ahead, the tension between the adoption of automation in ports and the preservation of jobs presents a complex challenge for industry leaders, governments, and regulatory bodies. Companies like the Port of Vancouver assert that automation will create new jobs, yet this transition requires a careful approach to ensure workforce adaptation and training. Governments and regulatory bodies may need to consider policies that facilitate this transition, balancing technological advancement with social and economic impacts.

Implications of autonomous ports

Wider implications for autonomous ports may include:

Ports operating continuously throughout the day and night, enabling higher cargo processing volumes, reducing shipment delays and supply chain disruptions, and ensuring quicker delivery of goods to markets.

Complete automation of port activities, including berth and yard planning and predictive maintenance, leading to reduced machine downtime and more efficient port operations.

Expansion of automation investments from ports to final consumers, encompassing autonomous over-land freight transport like trucks and trains, as well as last-mile delivery solutions such as delivery drones, enhancing overall logistics efficiency.

Escalating tensions between labor unions and port authorities, potentially leading to increased strikes and a growing call for government regulation in the automation sector.

A shift in labor market demands, requiring workers to have higher technical skills and adaptability, leading to changes in education and training programs to meet new industry needs.

Governments establishing new policies and regulations to manage the ethical, safety, and economic implications of autonomous port technologies.

Increased reliance on cybersecurity measures to protect automated port systems from digital threats, creating a demand for advanced security solutions and professionals.

Enhanced environmental sustainability in port operations due to more efficient use of resources and reduced emissions from automated machines and vehicles.

Shifts in global trade patterns, as ports with advanced automation capabilities become more attractive to international shippers, potentially altering economic balances between countries.