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Feb 23, 2015: Vol VIII Issue 173

ILWU, PMA Reach Contract Agreement!


SOURCE: Chris Dupin | AMERICAN SHIPPER U.S. Labor Secretary Thomas Perez announced Friday night the dockworkers' union and its employers reached agreement on a new five-year contract.  U.S. Labor Secretary Thomas Perez announced Friday night the International Longshore and Warehouse Union and Pacific Maritime Association have reached an agreement on a new five-year contract.    Perez said container ports up and down the West Coast will resume working "full bore" on Saturday, but added he did not know how long it will take to work off the backlog in container traffic.    "They understand the urgency of the task," he said.    Monday morning at 7 a.m. there were 35 ships at anchor outside the Port of Los Angeles and the Port of Long Beach because of congestion, 4 more than yesterday, including 27 container vessels, according to the Marine Exchange of Southern California.

Dec 9, 2014: Vol VII Issue 172

Westcoast Ports' Slowdown Continues


SOURCE: McClatchy-Tribune  12/08/2014 8:34 PM ET Dec. 08--The heads of California's two largest ports, Los Angeles and Long Beach, joined the chorus of business people, port executives and farmers this week asking President Barrack Obama to appoint a federal mediator to help shippers and longshore union members reach a new labor agreement. The Pacific Maritime Association, which represents shipping lines and terminal operators on the West Coast, has been negotiating with the International Longshore Workers Union since May trying to reach a new contract deal. Port productivity has declined dramatically since Oct. 31 after the two sides concluded a largely unproductive bargaining session. The PMA says longshore workers are deliberately slowing work. The union claims the slowdown is a result of a long-building knot of problems ranging from larger ships to chassis shortages and terminal mismanagement. That slowdown continued Monday in Tacoma and Seattle and other West Coast ports. The net result has been that both imports and exports through ports such as Tacoma and Seattle have slowed seriously causing problems for merchants selling imported goods during the holiday and for exporters such as apple growers and potato processors trying to supply overseas markets with perishable goods. Both sides reportedly negotiated over the weekend hoping to reach some sort of tentative agreement before the ILWU holds a caucus in San Francisco on Dec. 15.

Jul 7, 2014: Vol XII Issue 171

Potential West Coast Port Labor Disruptions Loom Large for Importers and Exporters, Including Those of FDA-Regulated Products


July 7 2014 - Source: V. News On July 1st, the contract between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) officially expired, increasing the potential of a work stoppage and cargo disruption at West Coast ports. Two months ago, the parties began contract negotiations to renew their six-year agreement and/or hopefully progress far enough to prevent any form of work stoppage. While ports continue to operate as scheduled, U.S. Customs and Border Protection (CBP) recently issued guidance to help industries prepare for the possible diversion of vessels and cargo. In the past, negotiations have taken several weeks or even months after the contract expiration date to reach an agreement. In 2002, negotiations failed, and West Coast ports went on a 10-day strike, causing a variety of supply chain issues. More recently, in 2013, similar negotiations took place with workers at East Coast ports. There, a strike did not occur, though at times seemed likely. On the West Coast, the ILWU and PMA have pledged no cargo-handling disruption while negotiations continue. However, the parties did not extend the “no-strike clause” in their now-expired contract, leaving open the possibility of an organized strike. In June, CBP issued guidance for ship and cargo contingency plans to help stakeholders prepare for the possible diversion of vessels and cargo scheduled for discharge at West Coast ports. These guidelines outline procedures for Customs filers when cargo is discharged in a foreign port, transshipped at a foreign port for delivery at the original destination port (e.g., via barge), diverted elsewhere on the U.S. West Coast, diverted to an East or Gulf Coast port, or held in a ship at anchor until it can be discharged at the original destination port. Among other items, the guidance addresses how prior notice submissions to the U.S. Food and Drug Administration (FDA) should be handled in each scenario. CBP recently issued updated guidance, explaining that participants in the C-TPAT program will receive front-of-the-line benefits and priority processing at the ports. Additionally, the FDA is working with CBP and contributed to its guidance policy, helping to spell out filing and examination procedures for cargo subject to FDA requirements. If a work slowdown or stoppage does occur, shippers should consider potential re-routing options, either through Canada, Mexico, or East Coast ports. With limited trucking and rail capacity, as well as added congestion fees, shippers could face considerable cost and delays in attempting to move their cargo into and out of the U.S. Please contact Venable’s International Trade Group or Food and Drug Practice Group should you have any questions about how your business might be affected by a potential work stoppage.

Jun 12, 2014: Vol. XII Issue 170

West Coast Port Contract Negotiations Commence


SOURCE: MAREX - MARITIME EXECUTIVE.COM National Retail Federation Vice President Jonathan Gold made the following comments in a new blog post regarding the West Coast ports contract negotiations and retailers contemplating contingency plans: Contract negotiations between the West Coast port dockworkers and management continue into June as supply chain stakeholders anxiously await an amicable resolution, hopefully but not likely, before the current contract expires on June 30, 2014. While most parties believe that talks between the International Longshore and Warehouse Union (ILWU), which represents the dockworkers, and Pacific Management Association (PMA), which represents the terminal operators, will likely extend beyond the deadline, the big question facing farmers, manufacturers, retailers and others is whether or not we will see a supply chain disruption. Will there be a repeat of 2002, which resulted in a 10-day lockout of the ports, or will we see a repeat of 2008, where the parties worked through the contract? Throughout this process, NRF has urged both parties to negotiate a new contract without engaging in any supply chain disruptions. While it is still unknown what will happen in the negotiations, the good news is that the parties have already started talking and continue to remain at the negotiating table (a positive sign). Now, following normal protocols, there will be a media blackout from both sides throughout the negotiations. As the talks continue, retailers and others will continue putting contingency plans into place to ensure their cargo is not interrupted by potential disruptions at West Coast ports. Shippers learned a hard lesson from the 2002 lockout and the most recent action at East and Gulf Coast ports. Contingency plans come at a cost, though. Shipping early, diverting cargo to alternate ports, utilizing air transportation or storing products at warehouses all come at a cost, and higher costs for shippers and retailers equates to potentially higher costs for consumers.    As the world's largest retail trade association, NRF will continue to keep a close eye on the contract negotiations and will provide updates as they become available (though they might be rare, due to the blackout). Interested members should also consider joining the NRF Strategic Supply Chain Council.   While we do not think there will be a repeat of the 2002 port fiasco, it is important for retailers, shippers and other port stakeholders to be ready and prepared for any possibility.

Jan 15, 2014: Vol. XII Issue 169

Round 2014 - ILWU and PMA Square Off In Next Contract Talks


      Shipper should be aware of the potential downtime as the West Coast employers in 2014 are bracing for what could be a frustrating contract negotiations with the International Longshore and Warehouse Union.  Issues in Healthcare, wages and technology are repeating themes that could cause frustrations in this upcoming contract talks.  "Health care and the emergence of super-alliances among shipping lines aren’t directly addressed in the waterfront contract, limiting the ability of employers to negotiate these hot-button issues. To cite a timely example, President Obama’s Affordable Health Care act imposes a tax on so-called Cadillac plans under which corporate executives are covered. The ILWU medical plan would make many corporate executives envious. ILWU members pay no premiums, and their co-pay for medicine is $1. Longshoremen are among the highest-paid blue-collar workers in America. According to the 2012 PMA Annual Report, the average annual earnings for general longshoremen working 2,000 or more hours were $132,046. Marine clerks averaged $149,800." - SOURCE: BILL MONGELLUZO / JOC    

Oct 15, 2013: Vol. XI, Issue 168

Government Shutdown


13 DAYS AGO, U.S. GOVERNMENT HAS NOT BEEN ABLE TO REACH A CONGRESSIONAL AGREEMENT ON THE CURRENT FINANCIAL BUDGET.  THE IMPASSE HAS CAUSED AGENCIES SUCH AS THE U.S. CUSTOMS AND THE FEDERAL MARITIME COMMISSION TO FURLOUGH AND ESSENTIALLY CLOSED DOWN CERTAIN SERVICES.   MORE IMPACT IS YET TO BE FELT BY ALL BUSINESSES ACROSS ALL INDUSTRIES.

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