Tag: <span>US Ports</span>

Ocean carriers are diverting ships to other ports in the Northeast US while CSX Transportation plans on rare north-south intermodal trips between those ports to handle containers that would otherwise go through the Port of Baltimore. The moves come as shippers scramble to figure out their next best options in the immediate wake of the Baltimore port’s closure.

Vessel traffic in and out of the port remained suspended Wednesday as recovery efforts resumed for six missing construction workers, now presumed dead, who fell into the Patapsco River after the Maersk-chartered Dali crashed into the Francis Scott Key Bridge early Tuesday.

With salvage efforts for the downed bridge still to be undertaken, the Maryland Port Administration has not provided a timeline on when the port will reopen.

The length of the recovery efforts, as well as the potential impact on vessel traffic once the bridge gets rebuilt, are what’s at stake for many shippers that relied on Baltimore to move their goods and are now having to figure out their next steps.

“A shorter duration closure involves a temporary reroute to manage the disruption from a supply chain perspective,” a maritime logistics executive told the Journal of Commerce. “A longer duration disruption may involve rebuilding existing supply chains.”

For the time being, the temporary reroute is the option. Seagirt Terminal, the Port of Baltimore’s main container terminal, had planned for the arrival of 18 container ships through April 6, according to Seagirt’s vessel schedule as of Tuesday.

As of Wednesday, three Mediterranean Shipping Co. vessels that were previously bound for Baltimore – MSC Alina, MSC Altamira and MSC Paris – are expected to arrive at the Port of Philadelphia’s Packer Avenue Terminal this week, according to Packer’s vessel schedule.

PhilaPort said in a statement following Baltimore’s closure that “the maritime and supply chain community will naturally work to assist the Port of Baltimore at this time.”

New Jersey’s Port Newark Container Terminal plans to receive seven ships that were previously Baltimore-bound through the first week of April. Those include the MSC Kumsal, Maersk Makutu, Maersk Gironde, MSC Mattina and Nele Maersk, along with second calls by the Alina and Paris.

The Port Authority of New York and New Jersey said in a statement Tuesday that “it is proactively working with our industry partners to respond as needed and ensure supply chain continuity along the East Coast.”

The Gironde, Makutu and Maersk’s CCNI Andes are also now scheduled to call the Port of Virginia’s Norfolk International Terminal in the coming weeks after previously planning to arrive at Baltimore.

The Port of Virginia said in a statement that “it is already working with ocean carriers whose vessels were due to call Baltimore and offering our port’s capability to discharge cargoes as requested.”

Other carriers that call Baltimore, including CMA CGM and Evergreen Marine, are declaring force majeure on freight, leaving it indeterminate where they plan to discharge their goods. Evergreen’s 14,000-TEU Talos remains at anchorage at Savannah and its sister ship Triton is anchored at Norfolk.

Baltimore’s Seagirt, which handled 1.1 million TEUs last year, is planning to help move some of that freight. Ports America, Seagirt’s operator, said in a statement to the Journal of Commerce that it is working with CSX Transportation, its on-dock rail provider, to move import containers from other ports to Seagirt. It said it is also working with Norfolk Southern on a similar plan at its off-dock rail yard, which handles domestic containers.

“CSX and Ports America are collaborating on the fast launch of intermodal service for cargo diverted to other ports to come through the intermodal container transfer facility at Seagirt as a solution for cargo owners wanting Baltimore access,” the statement said. “Norfolk Southern has also reached out to discuss similar solutions for importers.”

Trucking, ocean freight costs expected to increase

Jeff Leppert, vice president of Redwood Logistics, told the Journal of Commerce that shippers are asking about their trucking options as they face port diversions. He said it’s unclear how long those diversions will last, but noted they will cause delays and higher expenses as more drayage providers and transload facilities for truckload freight are tapped.

“Shippers are asking what do we do about securing capacity,” Leppert said. “We don’t have a lot of excess truck capacity laying around.”

Robert Burdette, vice president of Baltimore-based third-party logistics provider Shapiro, told the Journal of Commerce that roughly two-thirds of the ocean freight coming into Baltimore goes to warehouse and distribution centers areas around Hagerstown, Maryland, and southeastern Pennsylvania.

He said New York-New Jersey will make more sense for some of the Pennsylvania-bound freight due to the shorter length of haul. But freight coming through Norfolk will likely require transloading to dry-van because drayage is not economic at the longer distance.

“Norfolk sounds appealing from the perspective of port capacity, but it doesn’t work that well for Baltimore,” Burdette said.

Challenges for exporters

Rachel Shames, vice president at Norfolk-based forwarder CV International, told the Journal of Commerce that transloading from container to truckload at the Port of Virginia is going to be the main option for shippers looking to get to the Baltimore region.

Shames said that more truckers are reaching out about work and there’s transload capacity available, but whether it’s going to be enough to handle the diversions is unclear.

“I get the sense that we can absorb some of the extra volume down here, but it’s really hard to say what the actual volumes are going to be,” she said.

Exporters, too, are facing a similar issue of repositioning their containers or waiting out the port’s reopening. CMA CGM sent a notice to shippers Tuesday indicating it will allow laden exports to remain at the port until Baltimore harbor reopens. The carrier said that exporters can use Norfolk or New York-New Jersey as an alternative, but that repositioning the containers will be at the shipper’s expense.

Burdette said it’s much more difficult for an exporter to absorb repositioning costs because of the low value of their freight. Ports America said export containers will also be addressed through the CSX and Norfolk Southern service once plans for import containers are finalized.

Details please refer to JOC news.

Source:

Angell, M. (2024b, March 27). Northeast ports prepare for Baltimore-bound freight as Shippers Scramble. Journal of Commerce. https://www.joc.com/article/northeast-ports-prepare-baltimore-bound-freight-shippers-scramble_20240327.html

The closure of the Port of Baltimore will be felt far from Chesapeake Bay but tempered by excess capacity at other ports and on US highways, analysts and industry sources say.

Problems could range from shortages of drayage and flatbed capacity on the East Coast to delays and higher costs for the delivery of goods rerouted to other ports. While it’s unknown how long Baltimore’s port will be closed, most knock-on impacts are expected to be short-lived and specific to certain markets and industrial verticals.

“It’s peak season for flatbed work out of Baltimore, and the supply of agricultural and construction equipment to the Midwest could be disrupted,” Dean Croke, principal analyst at DAT Freight & Analytics, told the Journal of Commerce.

That’s one of many potential challenges shippers and trucking companies might see in the wake of the port closure after a container ship struck and collapsed the Francis Scott Key Bridge early Tuesday, Croke and other industry sources said.

The immediate issue for shippers, warehouse operators and carriers in the Baltimore area was how to keep freight moving. “The loss of the bridge has been impactful, as that’s a big hazmat route,” said John Luciani, COO of LTL Solutions for regional less-than-truckload (LTL) carrier A. Duie Pyle.

Trucks carrying hazardous materials are banned from the Baltimore harbor tunnels on I-95 and I-895 and use the I-695 beltway around Baltimore. The collapsed bridge is on the eastern half of that route, which means trucks must detour to the west.

Luciani said traffic congestion has increased since the bridge collapse but called that an “inconvenience” rather than a significant problem. “The impact is probably an additional 30 minutes” as trucks take alternate routes around Baltimore, he said.

Details please refer to JOC news.

Source:

Cassidy, W. B. (2024, March 27). Trucking squeezed, but not crushed, by Baltimore Port Closure. Journal of Commerce. https://www.joc.com/article/trucking-squeezed-not-crushed-baltimore-port-closure_20240327.html

The Port of Baltimore will remain closed for the foreseeable future after a Maersk-chartered container ship lost power and crashed into the Francis Scott Key Bridge early Tuesday, collapsing the span and sending construction workers on the bridge into the Patapsco River. At least six workers remained missing, authorities said; two were rescued from the water.

With the fifth-largest container port on the US East Coast now effectively isolated from waterborne traffic, the deadly accident will, at least temporarily, reconfigure the region’s supply chain. Mediterranean Shipping Co., the world’s largest container carrier, said it expects it will be “several months” before it can resume calls to Baltimore.

Baltimore is the largest port along the East Coast port for handling roll-on, roll-off cargo such as cars, light trucks and farm equipment, processing 389,096 auto units last year.

The port’s closure could put pressure on container lines as they divert vessel calls, challenging ocean service reliability at other US East Coast ports and even generate congestion if there’s vessel bunching at those gateways.

“This is a major disaster and will create significant problems on the US East Coast for US importers and exporters,” Lars Jensen, CEO of Vespucci Maritime and a Journal of Commerce analyst, said in a LinkedIn Post. “The bridge collapse will mean that for the time being it will not be possible to get to the container terminals – or a range of the other port terminals – in Baltimore.”

President Joe Biden, speaking from the White House, promised to put the full weight of the federal government behind recovery efforts in Baltimore, including funding the entire cost of reconstructing the bridge. “I directed my team to move heaven and Earth to reopen the port and rebuild the bridge as soon as humanly possible,” Biden said.

Alternative routings for vessels looking to drop off or remove cargo from the region include Wilmington, Delaware; Philadelphia and Norfolk, said S&P Global analysts, noting that the three ports ranged from 120 miles to 260 miles from Baltimore via truck.

No timeline for port reopening

The US Coast Guard said it received a report at 1:27 am Tuesday that the 948-foot container ship Dali struck the Francis Scott Key Bridge. Maryland Gov. Wes Moore said in a statement that the Dali reported losing power prior to the collision.

Jennifer Homendy, chair of the National Transportation Safety Board (NTSB), said a press conference that search-and-rescue efforts were still underway late Tuesday for at least six construction workers who were on the bridge at the time of its collapse. She did not offer a timeline on when the port would reopen.

“Right now, it’s about people and addressing the needs of those that were impacted, that’s the focus,” Homendy said. “I don’t think anybody at the NTSB command post is thinking about the next steps for getting things cleaned up. They are working to find out who was impacted and how do we address that, because that is and should be the priority always.”

The Maryland Port Administration said in a statement that due to bridge strike, “vessel traffic into and out of the Port of Baltimore is suspended until further notice.” It said that trucks are still being processed at the port’s main container terminal, Seagirt.

The port said in its last update that “at this time we do not know how long vessel traffic will be suspended.”

No Maersk personnel onboard vessel

The Maritime and Port Authority of Singapore, which flagged the 9,962-TEU ship, said the Dali had 22 seafarers on board. None were injured.

The ship is owned by Singapore-based Grace Ocean Pte. Ltd., which has a fleet 54 ships of various types, including six container ships, five of which are chartered to Maersk, according to Sea-web, a sister product of the Journal of Commerce within S&P Global.

The Dali is operated by Singapore-based Synergy Maritime, Sea-web data shows. It is deployed in the 2M Alliance’s TP12/Empire service between North Asia and the US East Coast. Baltimore was the last US call before heading to the Port of Colombo in Sri Lanka, according to its last AIS track.

Maersk said in a statement to the Journal of Commerce that the Dali “is time chartered by Maersk and is carrying Maersk customers’ cargo. No Maersk crew and personnel were on board the vessel.”

The carrier added it was “horrified by what has happened in Baltimore, and our thoughts are with all of those affected.”

Synergy Maritime said in a statement that the vessel was outbound from Baltimore under control of two local pilots at the time of the accident. It said all crew members and the two pilots have been accounted for and there has been no pollution from the accident.

“The US Coast Guard and local officials have been notified, and the owners and managers are fully cooperating with federal and state government agencies under an approved plan,” Synergy said.

Trucks still working Seagirt terminal

Seagirt, which handled approximately 1.12 million TEUs last year, is also home to three other Asia services along with the TP12/Empire. Those include the Ocean Alliance’s Taiwan Strait/AWE3 service, Mediterranean Shipping Co.’s Santana service and Zim Shipping’s ZXB service.

The 2M Alliance also operates two trans-Atlantic services that call Baltimore, with other container lines operating various services from India and South America that also call the port. It is not known yet how those services may be rerouted.

Maersk said in a customer advisory that cargo on the TP12 service, its two European services, and a service from South Africa would omit Baltimore “for the foreseeable future, until it is deemed safe for passage through this area.”

According to Ports America’s vessel arrival schedule, some 18 container ships were expected to arrive at Seagirt between March 26 and April 6. Those include Evergreen Marine’s 14,000-TEU Triton and Talos, which are deployed in the Ocean Alliance’s Asia service and expected to call over the next two weeks. Another ship in 2M’s TP12 service, the 10,000-TEU Maersk Yukon, was expected to call in the next week.

MSC, Maersk’s partner in the 2M Alliance, said in a statement the Dali was carrying cargo for MSC customers. The carrier also said it expects it will take “several months” to resume calls at Baltimore.

“We are expecting substantial delays to cargo aboard the (Dali) and currently standing on the quay in Baltimore,” MSC said. “Further to the port authority’s closure of the port, we also have no choice but to omit Baltimore from all our services for the foreseeable future, until the passage to port is reopened and declared safe. We expect this to take several months and all MSC customer cargo will be rerouted and discharged at alternative ports in the meantime.”

Details please refer to JOC news.

Source:

Angell, M. (2024, March 26). No timeline for Baltimore port reopening following bridge collapse. Journal of Commerce. https://www.joc.com/article/no-timeline-baltimore-port-reopening-following-bridge-collapse_20240326.html

Terminal operators at the ports of Los Angeles and Long Beach are working to reduce a backlog of rail containers that have accumulated during two consecutive months of strong imports and are urging the railroads to send more cars to the ports to help them finish the job.

The rail container inventory at Yusen Terminals in Los Angeles is double the normal volume, but the terminal has managed the load thus far. “We’ve been backed up for four to five weeks, but there’s no real congestion yet,” said Yusen CEO Alan McCorkle.

Still, McCorkle said he anticipates strong volumes for summer and fall as much of the discretionary cargo that left West Coast ports last year during the prolonged longshore contract negotiations returns.

US imports from Asia in January and February handled in Los Angeles-Long Beach totaled 1,395,837 TEUs, an increase of 39.6% from the first two months of 2023, according to PIERS, a Journal of Commerce sister company within S&P Global.

The two railroads that serve Los Angeles-Long Beach, BNSF and Union Pacific, say they are responding to the backlog in Southern California. BNSF and Union Pacific told the Journal of Commerce they are deploying more intermodal railcars to Los Angeles-Long Beach and are adjusting their operations so the terminals can clear out the rail containers and reduce dwell times.

BNSF in February set a record for on-dock intermodal container moves in Los Angeles-Long Beach, beating its previous February volume record set in 2021, said Jon Gabriel, the railroad’s vice president for innovation, service design and network strategy.

BNSF is steadily reducing the rail container backlog, he said. “We will whittle away at it and should be completely current by the start of April,” said Gabriel.

BNSF has positioned “ready fleets” of railcars at “multiple locations” throughout the western US so it can deploy more equipment when needed at the ports and along its network, Gabriel said. “We have dedicated equipment that focuses only on the ports,” he added.

In addition to the import surge in Los Angeles-Long Beach, operating conditions in the western part of the country were hampered by wildfires in Texas and flooding that occurred during multiple rainstorms on the West Coast, Gabriel noted.

When some terminals in Los Angeles-Long Beach began to experience a surge of imports, Union Pacific “temporarily restricted westbound empty billing to help marine terminals manage higher import volumes,” a UP spokesperson said. The temporary restriction was later lifted and UP isn’t experiencing a railcar shortage this week, the spokesperson said.

Backlogs vary from terminal to terminal

The rail container backlogs vary from terminal to terminal in Los Angeles-Long Beach. SSA Marine, which operates three terminals in Long Beach, has not experienced issues with rail containers so far this year. Due to its mix of ocean carriers, SSA does not handle as many intermodal containers as some terminals, said Ed DeNike, president of SSA Containers.

Details please refer to JOC news.

Source:

Mongelluzzo, B. (2024b, March 19). BNSF, up working through rail container backlogs in Southern California. Journal of Commerce. https://www.joc.com/article/bnsf-working-through-rail-container-backlogs-southern-california_20240319.html

The chief of the largest container terminal at the Port of New York and New Jersey said he’s confident a new contract with longshore workers can be reached before the current deal’s expiration, something that would avert a potential strike later this year at East and Gulf coast ports.

Gary Cross, president of Maher Terminals, said the current leadership of the International Longshoremen’s Association (ILA) “are the most business-minded” union officials that he’s dealt with during his tenure in logistics. Cross delivered the remarks last week at the New York-New Jersey Foreign Freight Forwarders and Brokers Association’s annual dinner, where he was honored for his 45 years in the industry.

His message came after the governor of South Carolina struck a more defiant tone about ceding more power to unionized dockworkers at one of the largest ports in the Southeast.

Maher, which handled about 2 million of the approximately 4.2 million containers that crossed the New York-New Jersey docks last year, is also the port’s largest employer, with some 1,500 ILA members and management staff.

While not directly involved in current labor negotiations, Cross said the ILA and the United States Maritime Alliance (USMX), which represents port employers, “are dedicated to making sure cargo flows and they are dedicated to getting a deal done.”

“There’s no doubt in my mind that we’ll have a new deal before the expiration of the current contract,” Cross said. “I’m not losing any sleep over whether we’ll have a contract before the expiration of this one.”

Cross delivered the remarks as shippers begin to plot which ports and service routes they’ll use in their 2024 contract negotiations with ocean carriers. The ILA and USMX started informal talks on a new six-year collective bargaining agreement in 2022 in hopes of reaching an agreement before expiration of the current contract on Sept. 30.

The National Retail Federation (NRF), though, said recently it was “concerned that the discussions have been on hold for months and talk of potential disruptions has increased.” The NRF urged both sides to “return to the table as soon as possible and resume negotiations.”

John Nardi, a USMX director and president of the Shipping Association of New York and New Jersey, said his group and the ILA are still negotiating a master contract that would cover all 45,000 longshore workers at East and Gulf coast ports.

“We are talking and trying to find a way forward,” he said.

Nardi did not comment on what’s holding up further progress on contract talks. However, ILA officials have said publicly that alongside higher wages, they want local agreements that would add supervisory and foreman roles for union longshore workers at ports along the Southeast and Gulf coasts.

Details please refer to JOC news.

Source:

Angell, M. (2024, February 6). NY-NJ marine terminal chief expects new ILA labor contract before October. Journal of Commerce. https://www.joc.com/article/ny-nj-marine-terminal-chief-expects-new-ila-labor-contract-october_20240206.html

 

Shippers need to add two weeks of lead time to their ocean supply chains to account for container ships being rerouted around southern Africa amid ongoing attacks on commercial shipping in the Red Sea, according to the chief of the Port of New York and New Jersey.

While off-schedule ships are periodically crowding marine terminals, the port is not seeing any major impact from the longer transits as vessels divert from the Suez Canal, Bethann Rooney said.

Speaking at a state of the port event in Jersey City, Rooney, port director for the Port Authority of New York and New Jersey (PANYNJ), said Monday that about 45% of the port’s cargo volumes typically move through the Suez Canal, either on both voyage legs or combined with a transit through the Panama Canal.

Rooney added that while the port is expecting a normal year as far as volumes — the PANYNJ’s budget forecast is for 3% growth in 2024 — the diversions away from the Suez Canal and the drought limiting ship transits through the Panama Canal “will surely impact what goes on there on the port.”

So far, Maersk and Mediterranean Shipping Co. have routed four services to the US East Coast offered under the 2M Alliance via the African Cape with two of those still using the Panama Canal for their eastbound trans-Pacific voyage.

THE Alliance members Hapag-Lloyd, Ocean Network Express and HMM are using a combination of Cape routings and Panama Canal transits on three East Coast services. Ocean Alliance member CMA CGM has rerouted two Indian subcontinent and one East Asia service via southern Africa.

Ocean carriers have been adding extra loaders and resetting schedules to account for the longer journey around the African Cape. Even so, Rooney said shippers need to plan that any vessel leaving Asia for the US East Coast will be two weeks later than usual due to the Cape routing.

“All of our services that go through the Suez Canal have for the most part decided to go around the Cape of Good Hope,” Rooney said. “That adds between 10 and 14 days to the transit. But it’s at least a consistent addition of that time.”

Some vessel bunching, but no congestion

With schedules in flux due to the longer routes or delays entering the Panama Canal, Rooney said New York-New Jersey marine terminals are sometimes getting hit with more than one ship in the same vessel service at the same time.

The Cape routings “have led to some vessel bunching, albeit pretty mild,” Rooney said. “What terminals are experiencing now as we’re beginning to see these vessels rerouted is a couple of days where there are more ships than they would typically handle.”

However, the vessel bunching is not creating any measurable slowdown at the port. Year to date, the PANYNJ said ships are only having to wait a little over one day at anchorage for a berth. The vessel bunching has also not increased dwell times for import containers and truck turn times at marine terminals.

While the Cape routings have only been in effect for the last month, there has yet to be any wholesale move by shippers back to West Coast ports.

Data from the Association of American Railroads (AAR) shows the two East Coast Class I railroads — Norfolk Southern and CSX Transportation — handled 365,483 containers through the first four weeks of 2024, down 2.4% from the year-earlier period. West Coast Class I railroads BNSF Railways and Union Pacific Railroad handled 500,534 containers during the same period, up 3.2% from a year earlier.

Ocean carriers are working to smooth out schedules to get back on track with regular weekly arrivals. Maersk said Friday it blanked three scheduled departures between Jan. 10-29 because of “delays affecting performance of our services on Asia to US East Coast trade, resulting in arrival behind schedule of certain voyages.”

Source:

Angell, M. (2024c, January 30). Ny-NJ port chief sees delays, but no congestion, from Suez Diversions. Journal of Commerce. https://www.joc.com/article/ny-nj-port-chief-sees-delays-no-congestion-suez-diversions_20240130.html

 

A proposed rule that would require truck drivers working the ports of Los Angeles and Long Beach to provide proof of ownership or lease for all private chassis — or else be sent for a safety inspection prior to picking up cargo — would needlessly increase the gateway’s already high truck turn times, according to trucking companies.

Truckers this week are pushing back on the proposal, which was made by the International Longshore and Warehouse Union (ILWU) in concert with waterfront employers represented by the Pacific Maritime Association (PMA) and due to be implemented on Wednesday. But the start date has been delayed while the sides attempt to negotiate a resolution.

The requirement to show proof of ownership or lease for private chassis is due to affect truckers calling at five marine terminals — Everport, TraPac and Yusen at the Port of Los Angeles and Long Beach Container Terminal and Total Terminals in Long Beach.

“To ensure a smooth and efficient out-gate transaction, we kindly request that drivers have these documents accessible when leaving TTI premises,” Total Terminals said in a customer notice last Friday that was obtained by the Journal of Commerce. “This proactive measure will help prevent any potential issues or delays.”

The paperwork provided by truckers must include the chassis number to be accepted.

Truckers and officials from the PMA met on Tuesday and were scheduled to continue talks on Wednesday to mediate the disagreement. The Harbor Trucking Association (HTA), ILWU and PMA did not respond to a request for comment.

Truckers warn of rising turn times

Truckers say implementing the paperwork measure would push average truck turn times in Los Angeles-Long Beach, already among the highest in the US, even higher. The average truck turn time in Los Angeles and Long Beach was 74 minutes in October and has been more than an hour in all but two months since January 2019, according to data from the HTA.

Details please refer to the JOC news.

Source:

Ashe, A. (2023, December 13). Truckers fighting ilwu, LA-lb terminal operators over chassis paperwork proposal. Journal of Commerce. https://www.joc.com/article/truckers-fighting-ilwu-la-lb-terminal-operators-over-chassis-paperwork-proposal_20231213.html

In dialogue among shippers, carriers and non-vessel-operating common carriers (NVOs) for the upcoming Asia-to-North America contract cycle, a new issue is being raised: the possibility of labor disruption, including a strike along the US East and Gulf coasts for the first time in decades.

International Longshoremen’s Association (ILA) President Harold Daggett on Nov. 4 told his rank and file to be prepared for that possibility if no agreement with carriers is reached by Sept. 30, 2024, when the current collective bargaining agreement expires.

With memories still fresh of West Coast disruptions during contract negotiations in 2022 and 2023 (and in many prior rounds), and supply chains being monitored closely by senior management following the pandemic upheavals, shippers who have built East and Gulf coast routings into their supply chains are taking no chances. They are raising the need for contingency plans in discussions with carriers and NVOs ahead of 2024 contract renewals, industry sources tell the Journal of Commerce.

But any diversions away from established routings, rail and trucking vendors, and distribution center networks will be inconvenient and costly. So part of the calculus will inevitably be this: There hasn’t been a coastwise strike along the East and Gulf coasts in the region since 1977, nearly a half century ago, so what are the odds a strike will really occur this time?

The answer gets into a complex mix of dynamics, including the state of the carrier industry, perceptions of carriers in Congress and election year presidential politics. But any analysis of the factors that could impact whether or not a strike occurs next year will be insufficient given inherent unpredictability of labor negotiations.

Some insiders, for example, predicted in 2022 that West Coast negotiations would be quickly wrapped up — only to be proved wrong when the talks and associated port disruptions stretched on for many months thereafter. They were ultimately only concluded in July of this year, and ratified in August, following intervention by the Biden administration, which was motivated by the need to avoid further supply chain disruption.

Details please refer to JOC news.

Source:

Tirschwell, P. (2023, December 5). Shippers weigh costly routing changes against possibility of East Coast Strike. Journal of Commerce. https://www.joc.com/article/shippers-weigh-costly-routing-changes-against-possibility-east-coast-strike_20231205.html

A local labor dispute in Portland that started more than a decade ago is jeopardizing the financial health of the International Longshore and Warehouse Union (ILWU) to the point the union has resorted to filing for bankruptcy protection to avoid paying a $19 million court judgement.

The ILWU’s filing for Chapter 11 protection Friday in the US Bankruptcy Court for Northern California in San Francisco resulted from five years of work stoppages and slowdowns from 2012-17 at Terminal 6 in Portland. The US District Court in Portland in 2019 initially found the ILWU International and ILWU Local 6 in Portland liable for $93 million in damages to the operations of ICTSI Portland, which operated Terminal 6 at the time. The court in 2020 reduced the award to $19 million.

While sources say the complex case before the bankruptcy court could take weeks to sort out, the legal machinations are not expected to result in cargo-handling interruptions on the West Coast. The Port of Portland now operates Terminal 6.

“I would not expect there will be any job actions,” James McKenna, president of the Pacific Maritime Association (PMA), which represents terminal operators and shipping lines and negotiates the coastwide labor contract with the ILWU, told the Journal of Commerce Monday.

McKenna said that in the remote possibility the ILWU engages in any job actions, the grievance procedure in the new coastwide contract, which was ratified before Labor Day, would allow arbitrators to step in immediately to stop any interruptions.

Terminal operator ICTSI Portland told the Journal of Commerce Monday it does not believe the ILWU’s attempt to avoid the $19 million court-ordered payment via bankruptcy will succeed.

“The facts have already been legally established before the National Labor Relations Board and in numerous court proceedings, including before a Portland, Oregon jury, which in 2019 found the ILWU liable for its illegal conduct,” ICTSI said in a statement.

ILWU slams terminal operator’s ‘scorched-earth’ tactic

Details please refer to JOC news.

Source:

Mongelluzzo, B. (2023, October 2). ILWU bankruptcy filing provides dramatic twist to long-running Portland dispute. Journal of Commerce. https://www.joc.com/article/ilwu-bankruptcy-filing-provides-dramatic-twist-long-running-portland-dispute_20231003.html