If you are having difficulty viewing this Page & Jones E-Newsletter, click here.

Description: Description: Description: Description: Description: Page & Jones, Inc. E-Newsletter

November 6, 2014  

 

ILWA CONTRACT NEGOTIATIONS

PORT CONGESTION IN LOS ANGELES, LONG BEACH CALIFORNIA         

 

 

“This is really a perfect storm,” said Port of Los Angeles Executive Director Gene Seroka.

The congestion at Los Angeles and Long Beach ports has been going on for at least two months, but no one expected it to last this long, and no one anticipates an immediate fix - gridlocked docks are putting more and more cargo into the terminals with very little movement of the previous cargo coming out first. It was first-in first-out, but we are experiencing first-in, last-out with the congestion stacking the containers one on top of the other.

The current labor contract between the International Longshore and Warehouse Union (ILWU) and port operators along the U.S. West Coast expired on June 30, 2014. Talks on a new contract and industry leaders have expressed concern, as a strike or other labor disruption would have a significant impact to the North American economy and to global trade. The ILWU represents 13,600 dock workers on the West Coast.

Contract negotiations between dockside management and labor remain at an impasse, while some of the largest vessels in the transpacific enter the San Pedro Bay harbor with massive loads of cargo.  At the same time trucking hours of service rules are slowing down drayage and intermodal services are backing up and containers without chassis are still sitting on the dock.  Several steps are being taken to increase the chassis pool, which is one of the primary reasons cargo is so backed up. Ever since many of the shipping lines got out of the chassis business to save money, chassis distribution at the terminals has been uneven. Chassis, which are the wheels attached to containers to move them, are now provided by independent companies.

 

Our regulatory experts are monitoring the situation and keeping a close eye on labor negotiations, which began on May 12, 2014. In the meantime we are checking shipment status on a daily/hourly basis to see where our client’s cargo stands in movement towards its final destination. While we can’t control the situation we can keep you informed.  Links to CBP instructions for handling procedures and other resources are as follow:

 

RESOURCES:         

http://www.ibtimes.com/  

LINKS:

 

CSMS# 14-000370 - Update to Possible west coast trade disruption

http://www.ilwu.org/    

http://www.pmanet.org/       

 


The information contained in this newsletter has been compiled from various industry newsletters and other public sources. While we use reasonable efforts to furnish accurate and up-to-date information Page & Jones, Inc. is not liable or responsible for the accuracy or reliability of any information contained herein.



PLEASE DO NOT REPLY TO THIS E- MAIL. You are receiving this newsletter because you are a member of the Page & Jones mailing list. To unsubscribe, send a message to enews-unsubscribe@pagejones.com.