The labour contracts of port workers along the US East and Gulf Coasts expire on 30 September 2024.

Labour talks have been held on multiple occasions throughout the year, but an agreement covering all ports is yet to be reached.

Unexpectedly, the International Longshoremen's Association (ILA), representing nearly 45,000 dockworkers, announced halting this week's talks with the United States Maritime Alliance (USMX) scheduled for 11 June.

The ILA said the USMX infringed the current agreement by "utilizing an Auto Gate system, which autonomously processes trucks without ILA labour.

The union described this action as "a clear violation" of the agreement.

"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," said International President Harold J. Daggett, Chief Negotiator for the union.

Port automation is a critical issue the union seeks to resolve with the USMX in the new six-year contract.

The union stressed in its statement that they "will not meet with USMX until the Auto Gate issue is resolved."

Being the largest longshoreman union in North America, this new development raises the risk of strikes this year.

Analysts claim that the ILA has been historically less likely to strike than the West Coast unions. However, a CNBC report highlighted that the ongoing Panama Canal restrictions and the Red Sea reroutings have pushed East Coast trade away from ports.

The threat of a strike could trigger a similar shift in an attempt to avoid labour-related disruptions.