Must Read: What the Longshoremen’s Strike Is Really About – and Why It Matters
RJ Hamster
October 1, 2024
What the Longshoremen’s Strike Is ReallyAbout – and Why It Matters
Dear Reader,
Perhaps you’re familiar with the term “October surprise.”
You may see pundits and reporters on cable news use the term during presidential election years. Basically, it refers to a news event that has the potential to change the political calculus of a campaign – and, potentially, the election itself.
With the presidential election on November 5, any major news that happens (or is leaked) during October could influence voters.
Well, it’s the first day of October… and we’ve already got two surprises: Iran’s missile strike on Israel and the longshoremen’s strike. In today’s Market 360, we’re taking a look at the strike.
In short, the International Longshoremen’s Association had been negotiating with the U.S. Maritime Alliance over a new labor contract. The union, which represents about 45,000 dockworkers, was threatening its first major strike since 1977.
Well, at midnight on Tuesday, negotiations broke down, and the strike officially commenced.
This is a big deal, folks.
The longshoremen’s strike impacts three dozen locations at 14 U.S. ports from Maine to Texas, effectively stopping containers from being shipped to and from our Eastern Seaboard and Gulf Coast ports. A two-week strike would disrupt holiday sales, impact supply chains for medications and other essential products, and create shortages of items like alcohol, chocolate, fruits, vehicles and even parts vital to U.S. factories.
These ports handle about 50% of goods shipped to and from the U.S. So, a prolonged strike – one that lasts weeks – would delay shipments and create goods shortages ahead of the busy holiday shopping season.
Port Liberty New York Terminal
If this strike persists, it is going to be incredibly disruptive to the U.S. economy. It could even reignite inflation, which the Federal Reserve has been fighting to rein in for years.
And believe it or not, it has everything to do with artificial intelligence.
Let me explain that…
And one step you can take in order to avoid sharing the dockworkers’ inevitable fate.
Now, the longshoremen have been offered a 50% pay increase over the next six years. But they have reportedly stood by their initial demand for a 77% increase.
I realize the effect of inflation over the past few years has been devastating for a lot of middle- and working-class families. So, understandably, everyone wants to get paid more.
But that’s not what the strike’s really about… It’s all about job security from artificial intelligence-powered robotic automation.
The dockworkers are worried about the ports getting automated and losing their jobs in the long term. And reports indicate they want assurances that there will be a total ban on automation.
In other words, no robots when it comes to loading and unloading freight. That includes cranes, gates and moving containers.
Unfortunately, I’ve got bad news for these folks.
Automation and AI are coming whether they like it or not. The proverbial horse has left the barn.
If we were to ban automation at our ports, it would put the U.S. economy at a major competitive disadvantage. I doubt the Chinese are going to ban automation at their ports, for example.
The fact of the matter is AI is going to completely reshape our world in the months and years to come.
Unfortunately, plenty of companies – thousands of companies – will fail to adapt. They’ll be rendered completely obsolete as AI technology reshapes the business landscape.
AI technology will usher in sweeping societal changes… just like the personal computer, the internet, and the smartphone did. Only the changes this time will be even faster and more disruptive.
And robotic automation is one of them.
The reality is robots don’t sleep. They don’t take vacations. They never need a break. They’re more efficient.
So, if you want to position your portfolio for success, you need to avoid the companies being disrupted by the AI Revolution – and load up on the ones that are leading the charge.
That’s when the world’s richest man is expected to unveil his new AI product that he calls the “Robotaxi”…
Now, the Robotaxi is set to completely transform transportation, save millions of lives and create an incredible amount of wealth for savvy investors who get in on the early stages.
And like any game-changing innovation, there will be companies – and people – who get left in the dust.
“To put it bluntly, we are cooked,” The Register reports one person posted in a San Francisco Uber driver forum. “We’re done for. In the age of artificial intelligence and automation, we’re the first to be impacted in a major way.”
I don’t want you to be one of them, and Luke doesn’t either. We want you to be able to profit from the groundbreaking innovations that are headed our way.
Thankfully, Luke has found a little-known Robotaxi supplier that he believes could play a key role in the autonomous vehicle revolution… and potentially make investors a lot of money along the way.
That’s why he’s hosting a special strategy session to show you how to get all the details on this little-known supplier at 10 a.m. Eastern on Monday, Oct. 7.
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