The union of dockworkers from the East Coast and Gulf Coast of the USA has canceled the wage negotiations planned for this week, raising the possibility of a strike at some of the largest commercial ports in the country later this year.

The International Longshoremen's Association (ILA) has canceled the talks scheduled for Tuesday in Newark, New Jersey, in protest against the use of automated machinery at some ports, which, according to the union, violates previous labor agreements.

The breakdown of negotiations marks a tough start to the talks aimed at securing a contract for more than 45,000 dockworkers from Maine to Texas before the current agreement expires on September 30. A strike at this time would disrupt the flow of goods into the country right before the year-end holidays and threaten the American economy just ahead of the presidential election.

The combative union leader Harold Daggett has previously announced that his members will strike if a new contract is not concluded before the current agreement expires on September 30.

Harold Daggett warns all local branches once again to prepare for a strike on October 1," said an ILA spokesperson.

The National Retail Federation (NRF), a trade group whose members are some of the country's largest importers, urged the parties to negotiate and called on the Biden administration to moderate the talks. "It is crucial to avoid significant disruptions, including labor strikes, to minimize negative economic impacts," said Jonathan Gold, vice president for supply chain at NRF.

The union stated that it had broken off talks after discovering that a terminal operator belonging to the Danish shipping company A.P. Moller-Maersk was using autonomous equipment to handle trucks in ports, including the Port of Mobile in Alabama. Union leaders declared that they would not resume negotiations until the issue was resolved.

Representatives of the US Department of Labor did not respond to a request for comment.

A spokesperson for Maersk terminal operator, APM Terminals, said the company "was in full compliance" with the union contract. "We are disappointed that the ILA has made selective details of ongoing negotiations public in an attempt to generate additional pressure for its other demands," he added.

The United States Maritime Alliance, which represents ocean freight companies and port terminal operators on the East and Gulf Coasts, declined to comment.

The bitter start of the contract negotiations at the East and Gulf Coast ports follows a six-year agreement that was reached last year between employers at the West Coast ports and the International Longshore and Warehouse Union after more than a year of difficult negotiations, during which the Biden administration intervened to facilitate a deal.

Automation was a sticking point in labor negotiations for dockworkers on both coasts.

Daggett has vowed to curb the use of automated machines that lift, carry, and stack containers on docks worldwide. In a speech last year, he accused the Biden administration of standing by inactive while foreign shipping companies use the machines "to eliminate well-paid American jobs.

According to people familiar with the negotiations, most local issues have been resolved, but some, like automation, remain unresolved. The talks scheduled for Tuesday would have been the beginning of coast-wide discussions on topics such as wages.