American Shippers
The strike is now expected to happen after July 5th, which is a holiday for the union.
The International Longshoremen's Association (ILWU) &Pacific Maritime Association (PMA) started the 2014 contract negotiations last week. So far there isn’t much news to report other than the fact that both parties submitted written requirements to each other for review. There is speculation that this will be a lengthy negotiation and that there will not be a new contract signed before the expiration date of the existing contract which
is June 30, 2014. Labor disruptions are expected in the first two weeks of July, but obviously cannot be confirmed at this time.
ETC International Freight System will keep a close eye on this situation and provide further information/updates as we receive them.
Below is a more detail oriented article sourced by JOC:
ILWU Seeking Three-Year Contract
The International Longshore and Warehouse Union is seeking a contract forjust three years, according to Agriculture Transportation Coalition ExecutiveDirector Peter Friedmann, significantly shorter than shippers would like.
Issues at the center of the negotiations include jurisdiction and healthcare, and the latter figures into the length of the contract. The federal Affordable Health Care Act starting in 2018 will impose a so-called Cadillac tax on generous health care plans, such as those enjoyed by
longshoremen on the West Coast, where employers pay 100 percent of the premiums
and union members pay just a $1 co-pay per prescription for medicine. Friedmann
said the union is looking for a shorter contract that does not address health care in the hope that Congress will take action before 2018 to remove the tax.
Employers, represented by the Pacific Maritime Association, want a minimumthree-year contract, but would prefer a six-year contract to replace thesix-year contract that expires at the end of June, CONECT reports. Retailers and other cargo interests also would prefer a longer contract because it would provide for a longer period of stability on the docks.
Negotiations between the union and the PMA began on a positive note on May 12, with the two parties issuing a joint statement saying they expect cargo to keep moving until an agreement is reached.
The current six-year contract expires at midnight June 30, and negotiators expect to meet daily in San Francisco until a contract is reached.
Friedmann said that each side has laid out their initial demands in writing, with a total of 36 pages for the two.
Trade groups, particularly retailers, have pressed the ILWU and PMA for an early conclusion to the negotiations, before the current contract expires, but that is unlikely. Still, PMA President Jim McKenna throughout the spring said an agreement would be reached by mid-July.
⇛ Complete coverage of the ILWU-PMA negotiations
The looming contract expiration and fears of disruption connected with it already seem to be prompting cargo diversions. Two-thirds of respondents to a JOC shipper survey last week
said they plan to divert at least some cargo away from the West Coast to avoid potential problems, and import figures for April also indicate some acceleration of shipments to get ahead of the situation.
[An earlier version of this story quoted an incorrect statement that the union was seeking a two-year contract, as included in in a report from CONECT, the Coalition of New England Companies for Trade, sent this morning. — Ed.]
From Mediterranean Shipping Company
In the past years negotiations between the Unions and the Terminal Operators have been a cause of uncertainty. It is recognized that a strike, lockout, work stoppage, work slowdown or other labor-related disruption to operations at any U.S. port (collectively, “labor
unrest”) will cause congestion at U.S. ports.
MSC has filed as a precaution, a Congestion Surcharge, which remains effective and filed in our tariffs. Cargo received by the Carrier or its agent and scheduled to touch any U.S. port (West Coast, East Coast, or Gulf Coast) on or after June 1, 2014 may be subject to the following congestion charge:
$ 800 per 20’
$ 1,000 per 40’
$ 1,125 per 40’ HC
In the event no labor unrest occurs, this charge shall not be applicable. Once labor unrest has occurred, this charge shall continue to be assessed until such time as Carrier provides notice in this tariff that the impact of the labor unrest on its operations and those of any affected port(s) has ended. This charge shall be payable at USA, although if agreed by Carrier and Shipper, it may be paid elsewhere.
MSC will continue to monitor closely the situation and hopes that any resolution among the parties is found without resulting in stoppage and/or slowdown, causing discomfort, chaos, and
heavy additional expenses to both carriers and cargo owners.
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Container Max Weights:
- 20’ - 34,000 lbs (if weight exceeds 34,000 a tri-axle chassis must be used)
- 40’ – 44,000 lbs
Standard container internal dimensions
- 20'SD: 19' 6" L x 7' 8" W x 7' 9: H (capacity: 1250 CFT.)
- 40'SD: 39' 5" L x 7' 8" W x 7' 9: H (capacity: 2434 CFT.)
- 40'HQ: 39' 5" L x 7' 8" W x 8'10" H (Capacity: 2495 CFT.)
Less Than A Container Load (Consolidated ocean cargo)
- Ocean Freight minimum - 1 Cubic Meter = 48”x 42”x30”
- Standard pallet Sizes = 48”x 40” or 48”x42”
Air freight department call 1-800-383-3157
Ocean freight Department: Sales@etcinternational.com
Warehousing, Distribution: www.etcinternational.com
