Post Labor Day blues for some California shippers

Container shipping companies have had plenty of reasons to avoid inbound calls to California’s Port of Oakland and Port of Richmond this year, including labor disruptions caused by truckers and longshoremen. But the latest concern is being generated by a group of waterfront professionals who are only too eager to work…for extraordinary salaries.

The 60 men and women comprising the San Francisco Bar Pilots earn an average net income of $450,000 annually, but are asking for an 11 percent rate hike on shipping lines this year. Industry analysts believe the group has the political leverage to win the approval of California’s State Legislature, but two prominent stakeholder groups have voiced their opposition.

According to The Pacific Merchant Shipping Association (PMSA), compensation will go up even without a rate hike, as it is based on the increasing size of current container vessels. They are joined by and the Western States Petroleum Association, who maintain that ships for energy transport are also growing in size.

“It is clear that market forces will continue to result in higher net income for pilots even under the existing rate structure,” said PMSA President John McLaurin in a letter to the Legislature.

He noted further that this “monopoly” collected their highest revenues ever in their 150+ year history – nearly $40 million, from inbound vessel calls last year.

But if the Bar Pilots prevail in their bid for yet higher rates, the smart money says there may be less discretionary cargoes coming through the Golden Gate in the future.