Tag: <span>US Ports</span>

The International Longshoremen’s Association (ILA) and maritime employers along the US East and Gulf coasts said Friday they will resume negotiations in November on the remaining terms of a new master contract following a tentative wage deal that ended a three-day dockworkers strike earlier this month.

The ILA and the United States Maritime Alliance (USMX) said in a joint statement talks will take place in New Jersey next month on a six-year master contract. After settling on a wage offer on Oct. 3 that would increase longshore pay 62%, the two sides agreed to a contract extension until Jan. 15 to negotiate other outstanding issues.

“The ILA and USMX welcome the opportunity to return to the bargaining table and get a new agreement in place as soon as possible,” the two sides said in the statement, adding that no further details about the negotiations will be available prior to those meetings.

The biggest remaining issue has to do with contractual language around the use of marine terminal automation and new technology. Under the previous master contract that expired at the end of September, the ILA and USMX allowed marine terminals to implement semi-automated equipment provided that both the union and terminal agreed on staffing. But it completely barred the development of fully automated terminals.

The ILA has struck a more hardline tone during this bargaining cycle, calling for a ban on the use of any type of automation.

“The ILA is steadfastly against any form of automation — full or semi — that replaces jobs or historical work functions,” the union said in an Oct. 1 statement, the day its members walked off the job. “We will not accept the loss of work and livelihood for our members due to automation.”

Source:

Angell, M. (2024c, October 25). Ila, USMX said to resume talks on new master contract in November. Journal of Commerce. https://www.joc.com/article/ila-usmx-said-to-resume-talks-on-new-master-contract-in-november-5778794

Maritime employers and the International Longshoremen’s Association (ILA) have reached a tentative deal to reopen container terminals at East and Gulf Coast ports after trading new wage offers that would bring dockworker pay up over 60%. Longshore workers will work under a three-month contract extension until a formal deal is reached.

Official announcement of the breakthrough is expected Thursday evening, sources told the Journal of Commerce. The White House is scheduled to host a briefing Friday morning on the port strike. The ILA and United States Maritime Alliance (USMX), the employer group that represents ocean carrier and terminal operators in longshore contract negotiations, have yet to respond for a request for comment.

Ports are expected to reopen Friday.

Source:

Szakonyi, M., & Michael Angell, S. E. }. (2024, October 3). Ila, USMX agree on new wage offer and contract extension that reopens ports. Journal of Commerce. https://www.joc.com/article/ila-usmx-agree-on-new-wage-offer-and-contract-extension-that-reopens-ports-5741882

Retailers and other importers who normally ship through the US East and Gulf coasts to destinations in the eastern half of the country say they have a short window to decide whether to begin rerouting goods through West Coast ports.

Three shippers, speaking on the condition of anonymity, told the Journal of Commerce that if the International Longshoremen’s Association (ILA) strike is resolved by the end of next week, they will likely continue to ship through East and Gulf coast ports. However, if it looks as though the strike will continue for more than a week, they must consider routings through US and Canadian West Coast ports, which would bring higher costs and possibly a limited capacity of the western railroads to handle a sustained surge of freight.

“I’m not going to make a knee-jerk reaction,” said an importer of furniture and home improvement merchandise who asked not to be identified. “Let’s see what happens, but once the pain of a week or two takes hold, there is the option to reroute through the West Coast.”

Those diversions “can make things worse from a cost and shipping cycle pattern,” the logistics manager acknowledged.

Jon Monroe, who serves as an adviser to non-vessel-operating common carriers (NVOs), said shippers have little choice but to divert freight if the strike drags on.

“They’ll have to transload through the West Coast,” he said. “There is no Plan B.”

Rail capacity concerns

Importers are concerned, however, about the capacity of the western railroads, inland rail hubs and distribution centers to handle a sustained surge of inland point intermodal (IPI) freight diverted from East and Gulf coast ports. They note that the BNSF and Union Pacific (UP) railroads are already handling record eastbound IPI volumes.

For their part, BNSF and UP say they have been preparing for a strong peak season on the West Coast and have pre-positioned sufficient intermodal assets in Southern California and the Pacific Northwest to handle cargo diversions should the ILA strike continue for several weeks.

In a Monday letter to Robert Primus, chairman of the US Surface Transportation Board, UP CEO Jim Vena said the railroad has established a “buffer of resources” to handle its growing intermodal traffic this fall that has been driven in part by a shift of cargo from the East and Gulf coast ports to the West Coast.

Details please refer to the JOC news.

Source:

Mongelluzzo, B. (2024, October 2). Window to divert strike-affected imports to west coast closing soon. Journal of Commerce. https://www.joc.com/article/window-to-divert-strike-affected-imports-to-west-coast-closing-soon-5741052

Container ship anchorages are growing outside of US East and Gulf coast ports on the second day of a dockworker strike, with carriers offering limited options to avoid delays and currently planning to divert only a handful of vessels to alternative ports.

As of Wednesday, at least 64 container ships were scheduled call one of the 15 US ports affected by striking members of the International Longshoremen’s Association, according to data from Sea-web, a sister product of the Journal of Commerce within S&P Global.

As the largest strike-affected port and first call on most weekly services, half of the ships are destined for the Port of New York and New Jersey, with estimated arrivals until Nov. 1, Sea-Web data show. In the first week of October, some 13 ships are scheduled to arrive at the New York-New Jersey port.

In addition to those ships, Sea-web data shows another 13 ships are currently at the ports, sitting at anchorage, with nine outside the Port of Savannah alone. The Georgia Ports Authority said in a statement Wednesday that when Savannah reopens, it will have the yard space to deal with the backlog.

The vessels are operated by carrier members of the United States Maritime Alliance (USMX), the employer organization that negotiates collectively with the ILA. It does not include smaller carriers that are not affiliated with the USMX, nor vessels that call non-ILA marine terminals.

Sea-web data looks at port destinations listed through automatic identification systems with an expected arrival by Nov. 1.

Thus far, carriers have made minimal changes to vessel schedules due to the strike. Hapag-Lloyd advised shippers Tuesday that two vessels in its Caribbean Express Service (CES) that would have called the Port of Virginia this month will now call Canada’s Port of Saint John. The carrier’s US Gulf–South America (GS1) service that calls Houston and New Orleans will instead discharge at the Mexican ports of Altamira or Veracruz over the next two weeks.

Maersk advised shippers Tuesday that it has “mapped out specific possible vessel-level contingencies that will be actioned depending on the duration of the labor dispute.” Maersk has not outlined specific diversions yet, but one of the vessels in its Asia–US East Coast TP16 service, the 8,540-TEU Seroja Lima, currently adrift outside the New York-New Jersey oirt, will now head to the Bahamas Port of Freeport, with an expected arrival of Oct. 8, according to the vessel’s latest schedule update from Maersk.

CMA CGM declared force majeure at the outset of the strike, which in many bills of lading allows carriers to discharge cargo wherever is most convenient.

If the strike continues, carriers will likely have to make new routing decisions by the end of the week, according to Sea-Intelligence Maritime Analysis. The backlog will equate to roughly 400,000 TEU, or 1.4% of global capacity, the loss of which would “push up freight rates, not just on the trades to the US, but likely across all major deep-sea trades,” Sea-Intelligence CEO Alan Murphy said in a report released Wednesday.

Source:

Angell, M. (2024b, October 2). Ships backing up outside of strike-shut US east, Gulf Ports. Journal of Commerce. https://www.joc.com/article/ships-backing-up-outside-of-strike-shut-us-east-gulf-ports-5741090

ELIZABETH, NJ — The head of the International Longshoremen’s Association (ILA) in the early hours of Tuesday pledged he would secure a “great contract” that he would like to complete by the end of the month, just hours after hundreds of union dockworkers at US East and Gulf coast ports went on strike at midnight.

“Whether it’s one week, two — I’m hoping by three it’s over, I’m hoping — you are making history here,” ILA President Harold Daggett told the crowd, noting the significance of the union’s first strike since 1977. “We are going to walk away with a great contract.”

The ILA rebuffed a last-minute contract extension from maritime employers that aimed to head off the strike. Daggett has said previously the ILA would neither work past the expiration of the current contract nor extend it. The union said in a statement early Tuesday morning the United States Maritime Alliance’s (USMX) latest offer “fell far short of what ILA rank-and-file members are demanding in wages and protections against automation.”

The strike, which has forced the closure of all major container terminals from Maine to Texas, has scrambled the expected arrival during October of 62 container ships originally destined for ports along the East and Gulf coasts, according to Sea-web, a sister product of the Journal of Commerce within S&P Global. The total capacity of those vessels is approximately 485,725 TEUs.

Ships are already planning to discharge cargo at non-affected ports. Hapag-Lloyd said Monday that vessels in its Caribbean Express Service that would have called the Port of Virginia this week now plan to call Canada’s Port of Saint John. In addition, the carrier’s South America East Coast Service is now preparing to call Mexico’s Port of Altamira instead of the US Gulf Coast ports it normally calls.

Details please refer to the JOC news.

Source:

Angell, M. (2024, October 1). Ila’s Daggett promises dockworkers “great contract” as Strike begins. Journal of Commerce. https://www.joc.com/article/ilas-daggett-promises-dockworkers-great-contract-as-strike-begins-5739618

Several US ports along the US East and Gulf coasts are working under contingency plans ahead of a possible strike by dockworkers on Oct. 1, including extending terminal hours and implementing deadlines for operations.

The plans come amid the increasing likelihood that the International Longshoremen’s Association (ILA) will not reach an agreement with the United States Maritime Alliance (USMX) on a new master contract covering East and Gulf coast dockworkers. ILA President Harold Daggett has said the union will not agree to an extension once the current contract expires on Monday, Sept. 30.

Port of Virginia outlines closure schedule

The Port of Virginia will begin stopping cargo operations on Sept. 30, according to port officials, with the last inbound train delivery scheduled for 8 am. Additionally, all inbound truck gates will close at noon. In a statement, the port said use of its Trucker Reservation System (TRS) is “strongly encouraged” on Sept. 30.

At 1 pm on Sept. 30, ocean operations will stop, vessels will be required to sail, and the last outbound train will leave, the port said. All motor carriers must leave the port at that time. At 6 pm, all other container operations will halt. Reefer units will remain plugged in but will not be monitored.

The Virginia Port Authority’s privately held terminal operating company, Virginia International Terminals, will not be charging demurrage for containers in the terminal during the strike.

“Once an agreement has been reached, the Port of Virginia will implement its resumption of operations plan and methodically and safely bring terminals back online,” the VPA said.

New Orleans adds Saturday hours

The Port of New Orleans has issued similar deadlines, but added Saturday hours at the New Orleans Terminal from 8 am to 5 pm on Sept. 28, with a one-hour break from noon to 1 pm. Port officials said any work stoppage from the strike will not increase demurrage charges.

At the New Orleans Terminal, which serves Mediterranean Shipping Co., Maersk and Zim Integrated Shipping Services, vessel operations will halt at noon on Sept. 30, with rail and gate operations stopping at 4 pm. Receipt of export reefer containers ends at 4 pm Sept. 27 and import reefers must be out of the gate by 4 pm Sept. 30 “unless prior approval is obtained from New Orleans Terminal,” according to the port.

At Port NOLA’s Ports America terminal — serving CMA CGM, Hapag-Lloyd, Seaboard, Evergreen, COSCO, OOCL and Yang Ming — deadlines for vessel operations have not yet been made public, but gate operations will conclude Sept. 30 at 4 pm. Import reefers must be out of the gate at that same time, whereas customers are responsible for ensuring export reefers are loaded by Sept. 30. Mirroring the situation at the Port of Virginia, reefers will remain plugged in, but will not be monitored, during a work stoppage.

Jacksonville expecting partial impact

In Jacksonville, a strike is expected to affect one-third of the Port of Jacksonville’s (JAXPORT’s) business, port officials said in a statement.

“The remaining two-thirds of JAXPORT’s business, including Puerto Rico cargo, will continue normally,” the port said. “In addition, none of JAXPORT’s 172 direct employees are ILA members, so all workers directly employed by JAXPORT will continue to work, which means all JAXPORT main gates and administrative functions will remain open regular operating hours.”

Still, customers are encouraged to contact their terminal operators as they are responsible for establishing operating hours.

The Alabama Port Authority said it is monitoring the potential effects of a strike at the Port of Mobile, where its container terminal is managed by APM Terminals.

Meanwhile, ports in the southern US are preparing for another potential impact to operations — the threat of Tropical Storm Helene, which is forecast to strengthen and make landfall along Florida’s Gulf Coast early Thursday.

Source:

Robb, L. (2024, September 24). More US ports reveal contingency plans as Ila strike deadline inches closer. Journal of Commerce. https://www.joc.com/article/more-us-ports-reveal-contingency-plans-as-ila-strike-deadline-inches-closer-5733992

Some ports along the US East and Gulf coasts are going public with their contingency plans ahead of a planned strike by dockworkers on Oct. 1, including staying open for business on weekends.

That comes as some ocean carriers are cutting off new export bookings ahead of the possible work stoppage and issuing surcharges for cargo en route to potentially closed ports.

The contingency plans come amid the increasing likelihood that the International Longshoremen’s Association (ILA) will not reach an agreement with the United States Maritime Alliance (USMX) for a new master contract covering East and Gulf coast dockworkers. ILA President Harold Daggett has told his members that the union will not agree to an extension once the current contract expires on Sept. 30.

The Georgia Ports Authority (GPA) said in a customer advisory Wednesday that shippers should take delivery of cargo before Oct. 1, noting its Garden City Terminal in Savannah will be closed after that in the event of a strike. In addition to opening for the two Saturdays remaining in September, Garden City will open for a full day on Sunday, Sept. 29 for cargo retrieval.

The GPA said it will take export containers until Sept. 30, including refrigerated containers. But it said that if a reefer box does not make it onto a ship by that day, “they will not be monitored and maintained if the port is closed due to a work stoppage.”

The GPA added that it will not charge terminal demurrage to shippers during a work stoppage.

A notice Wednesday from the Port of Houston said its two container terminals plan to open truck gates and work on vessels up until 7 pm on Sept. 30, with the cutoff for export drop-offs an hour earlier. The port said it is evaluating the need for extending regular work hours for the terminals next week, with plans to open Saturday, Sept. 28.

“We encourage imports to be picked up as soon as possible, anything in the yard after 7 pm on September 30th, 2024, will be unavailable until the work stoppage ends,” the notice said. Houston said it would waive an import dwell fee for containers.

The Port of Virginia said in an operations alert that it will open its two main container terminals and the Pinner’s Point Container Yard, which handles empties and chassis, for the next two Saturdays and the Sunday immediately before a strike.

Details please refer to JOC news.

Source:

Angell, M. (2024, September 18). Some US ports extending gate hours ahead of strike deadline. Journal of Commerce. https://www.joc.com/article/some-us-ports-extending-gate-hours-ahead-of-strike-deadline-5730261

Teaneck, NJ — The International Longshoremen’s Association (ILA) on Thursday appointed local vice presidents to head committees that will coordinate labor actions at East and Gulf coast ports if a new contract isn’t reached by the end of the month. Union leadership the day prior warned the ILA and its employers are “very, very far apart” on “economic” terms, namely wages, as well as automation.

The 13 committees are part of a strike mobilization plan outlined during a two-day meeting in Teaneck, NJ, where local union officials threw their support behind the union’s executive leadership negotiating stance against maritime employers, represented by the United States Maritime Alliance (USMX).

In a video message posted on YouTube Wednesday, ILA Executive Vice President Dennis Daggett said the union and employers are “at an impasse.” As of Thursday, no bargaining talks have been scheduled between the ILA and USMX, according to sources familiar with the negotiations.

“We can’t even get past the economics of a new contract,” Dennis Daggett said. “We are very, very far apart. Our members showed the world just how valuable our work is during the pandemic, and the carriers and terminals came out of that time with record profits, and they don’t want to share that with our members.”

Wages are a key sticking point in the current contract talks. The ILA is reportedly looking for a 78% increase in its top wage rate, or a $5 per hour increase each year over the contract’s six-year term. The USMX, which represents terminal operators and ocean carriers in ILA contract negotiations, is said to be offering an increase of about half of that, approximately 40%. During the previous two agreements, the ILA secured a $1 per hour wage increase each year.

“Sisters and brothers, it will be monumental if we are without a new master contract to replace the current one that expires in three weeks and four days,” ILA President Harold Daggett said in prepared remarks to the meeting. “We must be prepared if we have to hit the streets on Tuesday, Oct. 1, 2024.”

Details please refer to JOC news.

Source:

Angell, M. (2024, September 5). ILA locals prepping for coordinated strike at US East, Gulf Coast Ports. Journal of Commerce. https://www.joc.com/article/ila-locals-prepping-for-coordinated-strike-at-us-east-gulf-coast-ports-5721164

Container dwell times improved at North America’s major West Coast gateways in June despite strong volume growth amid front-loaded cargoes, and port managers say their marine terminals have both the capacity and fluidity needed to handle what’s expected to be a healthy peak season.

Los Angeles, Long Beach, Oakland, Seattle-Tacoma and Vancouver registered double-digit percentage import growth in June, with volumes up 6% at Prince Rupert. Yet rail container dwell times improved from the month before, port managers said, adding that rail networks leading to key inland destinations such as Chicago and Memphis are operating smoothly.

The strong import volumes from Asia are due to several factors, including front-loading of fall and holiday merchandise and a diversion of some discretionary cargo to the West Coast from the East and Gulf coasts due to concerns about a possible strike by the International Longshoremen’s Association (ILA).

Having already handled 10 new trans-Pacific services this year while recording improved performance metrics, and with ports along the West Coast of North America operating at 50% to 80% of capacity, the gateways say they are well-positioned to handle additional diversions from the East and Gulf coasts should an ILA strike occur after the current labor deal expires on Sept. 30. Furthermore, a normal seasonal dip in import volumes is likely in November and December, giving West Coast ports an additional buffer.

As the spike in imports has developed, US ports have been sharing with BNSF and Union Pacific railroads advance information on import volumes and operating conditions at marine terminals. The railroads have responded by increasing the deployment of railcars, locomotives and additional staffing to West Coast ports, port managers told the Journal of Commerce this week.

The Northwest Seaport Alliance of Seattle and Tacoma and its terminal operators, for example, hold daily calls with each of the railroads to share data and cargo projections, and railroads adjust their operations accordingly, said Jeff Bellerud, COO of the NWSA.

“We really get tactical,” Bellerud told the Journal of Commerce. “We’re impressed with the ability of the railroads to handle the spike.”

BNSF last month set a company record for direct ship-to-train loadings, beating the prior record that had been set in 2017 by 5%, said Jon Gabriel, the railroad’s vice president for innovation, service design and network strategy. BNSF has responded to the West Coast import growth by “surging rail cars, locomotives and crew staffing,” he said.

Details please refer to JOC news.

Source:

Angell, M. (2024, July 24). MSC restores Trans-Pacific Liberty Service with new call at Philadelphia. Journal of Commerce. https://www.joc.com/article/msc-restores-trans-pacific-liberty-service-new-call-philadelphia_20240724.html

Congress is moving closer to approving legislation funding ports and authorizing navigational projects at the ports of Baltimore and Oakland after the House of Representatives overwhelmingly approved its version Monday.

The Water Resources Development Act (WRDA), which the House approved by a 359 to 13 vote, authorizes approximately $4.8 billion in projects, including the widening and deepening of the Baltimore harbor and the widening of Oakland’s turning basin.

The Senate’s Environmental and Public Works Committee approved its own version of the bill on May 22; the legislation awaits a final vote by the entire chamber. If the Senate bill passes, leaders from both chambers will conference to create a final bill to send to President Joe Biden to sign into law.

Most projects set for authorization through WRDA are focused on storm and flood mitigation, although the bill also includes projects focused on inland waterways.

If the bill is approved, the US Army of Corp of Engineers will have the go-ahead to widen Baltimore’s Seagirt Loop Channel by an average of 760 feet and deepen the West Seagirt Branch Channel to its authorized 50-foot depth at an estimated cost of $63.9 million. The Oakland project to widen the harbor’s turning basin and deepen the harbor to the authorized 50 feet has an estimated cost of nearly $609 million.

Both projects aim to make it safer for vessels to navigate in the harbors and reduce ship idling, cutting down emissions.

Congress takes up water resources legislation every two years and has done so since 2014.

Source:

JOC. (2024, July 23). House approves Bill Authorizing Harbor Projects in Baltimore, Oakland. Journal of Commerce. https://www.joc.com/article/house-approves-bill-authorizing-harbor-projects-baltimore-oakland_20240723.html