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 - LM Editorial

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

Information abounds about the growing trend of electric lift trucks and the advantages and disadvantages of the electric solution. Amid all of the information from so many sources, what's the truth about electric lift trucks? This complimentary white paper breaks through the clutter to review why electric lift trucks are gaining in popularity and also to review their challenges, as well as their economic and environmental benefits.

Three weeks after initiating a coordinated series of slowdowns that have mired the major West Coast ports of Tacoma, Seattle, Oakland, Los Angeles and Long Beach, the ILWU has pushed away from the bargaining table.

DHL has released the third edition of its Global Connectedness Index (GCI), a detailed analysis of the state of globalization around the world.

The truck driver shortage is worsening, threatening the trucking industry’s ability to serve the nation’s supply chains. The shortage will almost certainly cause fleets’ costs to increase and shippers’ rate to continue to rise.

The Agriculture Transportation Coalition has asked the Administration to bring in a federal mediator to help resolve the negotiations, and if a strike or lockout occurs, the AgTC advocates the rarely-invoked Taft-Hartley Act.

Article Topics

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

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA