San Francisco Bay bar pilots up the ante

By Patrick Burnson, Executive Editor
May 10, 2011 - LM Editorial

While union dockworkers and truckers have long been criticized for making U.S. West Coast ports weaker, another faction of organized labor may pose an even greater threat to the competitiveness of one major ocean cargo gateway.

Last week, the California State Board of Pilot Commissioners voted to recommend an increase in the rates and surcharges paid to the pilots who guide cargo ships in and out of the San Francisco Bay.

If enacted, shipping through the Port of Oakland will suddenly become more costly.

This action by the Board will be forwarded to the state Legislature, which must approve the increases before they become effective. San Francisco Bar Pilots made an average individual income of nearly $400,000 in 2010.

This proposed rate increase, coupled with predicted growth in shipping, will result in a projected income of around $530,000 per pilot by 2015.

Prior to the hearing, the San Francisco Bar Pilots Association submitted a proposal to the Board of Pilot Commissioners requesting a rate increase of 22 percent over four years.

This request would have meant that the pilots who work in the San Francisco Bay would have pushed their projected income to more than $600,000 by 2015. The Pacific Merchant Shipping Association (PMSA), representing ratepayers, also submitted a rate change request, one that would have resulted in pilot net incomes of $425,000 by 2016.

“We appreciate the important work done by harbor pilots everywhere and believe they should be fairly compensated for their work,” said John McLaurin, PMSA president. “However, for the State of California to recommend increasing this rate and further driving up pilot compensation is irresponsible and unjustified.”

The San Francisco pilots already are the highest paid in the state. When compared to the Port of Los Angeles, where pilots work the nation’s busiest container port and have a base compensation of $227,000 per year, it is overwhelmingly clear that they already have significantly higher pay than their peers.

“We will vigorously fight this exorbitant pay increase in the Legislature,” added McLaurin. “This increased cost directly hinders the ability of our members to improve our ports’ infrastructure to make them more efficient, invest in the environment and create jobs.”

For related articles click here.



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

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Download the newly released research report, "Transportation Management Systems" conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and Logistics Management magazines. Learn what logistic experts are saying about their current supply chain technology infrastructures, how they tackle the transportation component, and revealed the gaps that still need to be filled in order to attain end to-end visibility of a streamlined supply chain.

From cost center to growth center. Get insightful opinions on changes in the marketplace from this independent survey of warehouse personnel. Motorola Solutions examined the current warehousing marketplace in our 2013 Warehouse Vision Report, conducted April-May of 2013.

Even though not all publicly-traded less-than-truckload carriers (LTL) have posted second quarter earnings yet, the early consensus for those that have issued results is looking very good.

The advance estimate for second quarter GDP at 4.0 percent could serve as a sign of a steadier and improving economy.

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