Subscribe to our free, weekly email newsletter!


ILA strike could cause congestion at West Coast ports

Even shippers not reliant on ports served by the ILA can be affected.
By Patrick Burnson, Executive Editor
December 21, 2012

While shippers using East and Gulf Coast ports brace for the imminent strike of ILA dockworkers, the West Coast shipping community is also expressing concern.

According to Oakland, California-based Devine Intermodal, shippers may be facing port congestion and vessel delays. That means more rotation changes and rail embargoes.
Furthermore, analysts noted, shippers may be slapped with a substantial “strike surcharge” imposed by the carriers.

Shippers are advised to scrutinize their contracts, as some include information on assessments made on this basis. Even shippers not reliant on ports served by the ILA can be affected.
West Coast shippers are still recovering from the The 8-day strike staged by International Longshore and Warehouse Union Local 63 Office Clerical Unit (“OCU”) against terminals at the Port of Los Angeles and Port of Long Beach last November.

United States Maritime Alliance (USMX) and the ILA have been in a protracted battle over the payment of container royalties, which are charges based on the weight of cargo received at each port. Carriers have been insisting that these variable charges be fixed, as they represent a cost that can not be passed on to shippers.

The ILA maintains that these charges are part of their compensation.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The trend of rising weekly diesel prices remains intact, with the Department of Energy’s Energy Information Administration (EIA) reporting this week that the average price per gallon of diesel gasoline increased 1 cent to $2.914 per gallon.

When the United States House of Representatives last week voted extend current law and authorizes surface transportation programs through the end of July by a steep margin, it was widely expected that the United States Senate and follow their lead. That is exactly what happened on Friday, May 22, with the measures headed to President Obama to be signed into law.

For the month of April, Cass and Avondale found that truckload rates in April, which measures truckload linehaul rates paid during the month, were up 3.8 percent annually, while intermodal dropped 1.9 percent annually during the same period.

Following the Pacific Maritime Association (PMA) signing off on ratifying a new five-year contract with the International Longshore & Warehouse Union (ILWU) on May 20, the ILWU followed suite on May 22, saying that 82 percent of its longshore worker members voted to ratify the tentative contract agreement between the parties that was reached on February 22.

Straying from its typical seasonal trajectory, United States-bound waterborne shipments dipped from March to April, according to data recently issued by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

Article Topics

News · Ocean Freight · Ports · Ocean Cargo · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA