Trends in Global Port Operations and Their Influence on Port Labor

Abstract

The port industry has undergone substantial structural changes during the past 15 years. The emergence of global terminal operators, global oligopolistic market consolidation, vertical and horizontal integration of liner shipping, and the new structure of global production networks in relation to emerging technologies are only a few of the factors that have fundamentally influenced port labor. Ports are no longer isolated functional nodes of the transportation chain, but are a fundamental component of a seamless supply chain, working along with satellite and inland terminals. At the same time, marine terminals sometimes function as extended warehouses, providing flexible virtual inventory. These developments have created substantial challenges to port labor, including the need for upgraded working skills, enhanced productivity, and the ability to adopt flexible working conditions. Unionized port labor has been traditionally highly inflexible in changing attitudes and adapting to new port work practices. In contrast, the explosion of port service demand in emerging economies, particularly in East Asia, was followed by an unprecedented increase in port productivity, coupled by flexibility in port working practices that cannot be accepted by unionized port labor in the United States and Europe. This paper examines some of the current challenges and implications for the U.S. East Coast port labor force—the International Longshoremen's Association—due to global developments in international trade and global port operations. It proposes that future research incorporate a broad range of disciplines in order to understand the competitive environment facing longshoremen better.