Disclaimer

The articles excerpted on this site report on the state of the industry as seen by mainstream media, and do not necessarily reflect the opinion of the officers of the ILWU Coast Longshore Division.

TEMCO grain terminal expansion on track for fall completion, officials say

Bill Wagner Photo / The Daily News

The renovation will add new docks, a new shipping system, new rail and barge unloading machinery and new systems for cleaning wheat and other grains, Butters said. Butters said the improved terminal could handle up to 200 million bushels of grain per year, as much as Temco’s Tacoma terminal. Bill Wagner Photo / The Daily News

A $50 million expansion of a Port of Kalama grain terminal is running behind schedule, but owners say the project should be completed in time to load crops from the fall harvest.

Before the upgrades, [General Manager Paul] Butters said Temco’s Kalama terminal employed a maximum of 50 to 60 workers depending on the season. When it reopens, Butters expects the operation will provide steady jobs for 120 workers. The International Longshore and Warehouse Union will represent most of those employees under a contract negotiated about a year ago, said former ILWU Local 21 President Jake Whiteside.

“I just believe that we were happy with the Temco agreement,” said Whiteside, who was president at the time of the negotiations. Whitside said he would like to see all of the union’s employees covered by contracts like the Temco agreement.

More at the Daily News

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Ports: June volume gains in California and South Carolina; new AAPA chair

Excerpts from Progressive Railroading:

The Port of Long Beach’s container volume in June rose 8 percent year over year to 610,516 20-foot equivalent units (TEUs) — the highest June total since 2007. … At the Port of Los Angeles, June volume totaled 736,438 TEUs, up 13.9 percent compared with June 2013 and the highest monthly volume since September 2012.

The South Carolina Ports Authority reported a strong June, too. The authority’s ports handled 149,183 TEUs, up 19 percent year over year. Non-containerized cargo rose slightly to 83,399 pier tons.

Meanwhile, the American Association of Port Authorities’ (AAPA) board last week elected Kristin Decas as incoming chair for 2014-15.

Read the rest at Progressive Railroading

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Manitoba pushes potash

Manitoba is hoping to capitalize on the potash boom the way Saskatchewan has.

The Selinger government is about to invite the world’s potash producers to sink their machines into a western Manitoba mine that could generate $2 billion worth of royalties for the province over the course of 40 years.

The Potash Corporation of Manitoba is preparing to issue letters to major mining-industry players — including Canadian potash companies Agrium, Mosaic and Potash Corp. of Saskatchewan — to gather expressions of interest in developing a $3-billion to $4-billion Russell-McAuley mine.

More at the Brandon Sun

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Scheduled events could push ILWU talks into August

From yesterday’s Journal of Commerce:

The International Longshore and Warehouse Union today completed its two-day caucus in San Francisco, and the union will resume contract negotiations with the Pacific Maritime Association on Wednesday. … Contract negotiations will resume Wednesday and will continue for the rest of this week, but the talks will recess again on July 28 so the ILWU can hold unrelated contract negotiations next week with grain handlers in the Pacific Northwest. The grain handlers are not members of the PMA, and their contract with the ILWU is separate from the coastwide contract at the container ports.

Given the events scheduled for the coming 10 days, it does not appear the ILWU and PMA will be able to complete the coastwide contract in the coming week, so talks will most likely continue into August.

More at the JOC (free registration required)

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Union aid supplies on way to Gaza

ITF unions send humanitarian relief to Gaza - July 2014

ITF president Paddy Crumlin stated: ”The situation in Gaza is desperate. There is a need for an immediate ceasefire before even more civilians are killed. We strongly echo and support the continuing calls by the ITUC (International Trade Union Confederation) for action in line with the UN Security Council resolution that called for ‘de-escalation of the situation, restoration of calm, reinstitution of the November 2012 ceasefire and respect for international humanitarian law, including the protection of civilians.”’

As its first lorryload of medical supplies begins its journey to Gaza, the ITF (International Transport Workers’ Federation), again backed calls for an immediate ceasefire there.

The ITF has organised a programme to help trade unions send food and medicines to Gaza. The federation’s office in Amman, Jordan is coordinating the provision of aid and is putting together the first cargo load now for despatch tomorrow. Expected to reach Gaza on Friday, the supplies will be handed over to UNRWA (United Nations Relief and Works Agency) and the Jordan Hashemite Charity Organization, whose support includes the running of a mobile hospital there.

ITF president Paddy Crumlin stated: “The situation in Gaza is desperate. There is a need for an immediate ceasefire before even more civilians are killed. We strongly echo and support the continuing calls by the ITUC (International Trade Union Confederation) for action in line with the UN Security Council resolution that called for ‘de-escalation of the situation, restoration of calm, reinstitution of the November 2012 ceasefire and respect for international humanitarian law, including the protection of civilians.’”

He concluded: “We firmly believe that a cessation of hostilities must be followed by renewed international pressure to achieve a long term solution, including the end of Israel’s occupation of the West Bank and a negotiated settlement that respects the 1967 borders between Israel and a Palestinian state. It is time that the rights of the Palestinian people are fully recognised in line with UN resolutions.”

For more information:

ITF union packages bound for Gaza

ITF union packages bound for Gaza

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Shipping alliances set for further expansion

Table 2

Table 2 shows the position between Asia and North America at the beginning of June, from which it can be seen that the G6’s market share of 35% well exceeds the EU’s 30% guideline, and member lines are also allowed to belong to a discussion agreement, so can recommend common surcharges and rate increases. Should Evergreen be allowed to join the CKYH alliance, their joint market share of effective vessel capacity would also just exceed the guideline. Source: Drewry Maritime Research.

Ocean carriers are clearly not yet done with mega-alliance expansion following China’s rejection of P3. Maersk and MSC’s subsequent 2M agreement is only the latest. Evergreen and the CKYH alliance are still talking to the US’ Federal Maritime Commission (FMC) about extending the scope of their operating agreement between Asia and Europe to include the US, and CMA CGM has yet to clarify who its new partners will be. The hot money is on CSCL and UASC.

New partnerships are required as no one has yet come up with a better alternative to reduce costs and improve service frequency at the same time, short of take-overs and mergers. Some may claim that mega-alliances are little better than price-regulating cartels, but poor to non-existent ocean carrier profitability since their introduction argues otherwise. As in the airline industry, where just three alliances handle the majority of passenger traffic, ocean carrier alliances handle the majority of East-West container traffic, and less integrated vessel-sharing agreements handle much of the North-South traffic. As ships get larger, even bigger cooperation agreements between more carriers will be needed to squeeze out economies of scale.

More at Maritime Executive; sourced from Drewry Maritime Research

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Arbitration on Panama Canal dispute to begin in Miami

Panama Canal

GUPC — which includes Sacyr Vallehermoso (Spain), Salini Impregilo (Italy), Jan del Nul Group (Belgium) and Constructora Urbana (Panama) — walked off the job for two weeks in February after several weeks of negotiations failed.

Arbitration of the first claim in a $1.6 billion dispute over cost overruns in the expansion of the Panama Canal gets under way Monday.

It will start with a teleconference to determine procedures, both sides’ positions and a timeline. Then the impasse will be arbitrated by an international tribunal seated in Miami, said Carolyn Lamm, an attorney who is representing the Spanish-led consortium that temporarily halted work on the canal earlier this year.

The money dispute pits the Panama Canal Authority, which oversees operations of the 50-mile-long canal, against Grupos Unidos por el Canal, a consortium of international construction companies that is the main contractor on the $5.25 billion expansion.

More in the Miami Herald

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Dockworkers plan to resume negotiations Wednesday

From The Columbian:

The International Longshore and Warehouse Union and the Pacific Maritime Association said in a joint statement Friday that they would engage in negotiations on a long-standing labor dispute with grain terminal operators in the Pacific Northwest.

The statement was included in a news release stating that the two parties are taking a break from negotiations today and Tuesday in order for the ILWU to convene its previously scheduled Longshore Division Caucus in San Francisco. It said negotiations, taking place in San Francisco, would resume Wednesday.

More at The Columbian

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Port of San Diego fees discourage business projects

Port of San Diego BAE Systems

At the Port of San Diego, Navy ship repairer BAE Systems was told it would cost $30,000 in port approval fees for a project that was only going to cost $50,000.

Amid budget problems last June, the Port of San Diego decided to impose fees to cover staff time spent processing paperwork and issuing approvals for new developments, improvement projects and lease negotiations.

The agency is charging up to $300 an hour or more for some staffers’ time, including salary, benefits and an apportionment of port overhead costs.

The fees are more far-reaching than those at other ports in the state, according to an agency consultant. San Diego budgeted $1.5 million of revenue per year from such fees, compared to $100,000 typically collected for similar services at the Oakland port.

Navy ship repairer BAE Systems was told it would cost $30,000 in port approval fees for a project that was only going to cost $50,000.

More at the San Diego Union-Tribune

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Matson carves niche in trans-Pacific expedited market

From the Journal of Commerce:

According to PIERS, the data division of JOC Group Inc., Matson transported nearly 103,000 TEUs from China to the U.S. in 2013, just over a 1 percent share of the eastbound trans-Pacific market. Though operating with U.S. crews on relatively small U.S.-built ships means its costs are higher than foreign-flag carriers, Matson is able to overcome the higher expense because it has revenue in both directions: Matson is able to move ships full to Hawaii and Guam, then to China, and full back from China to Los Angeles.

“The international market suffers from overcapacity, they’re losing money and not seeing any returns,” Wine said, referring to the trans-Pacific eastbound market. “Overall, what we are seeing in our niche market is quite strong performance.”

More at the JOC

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China-based cyberattack hits logistics operators, shippers

NAIS_overview

In May, Longshore and Shipping News posted a Reuters article that said, ”Researchers say they have discovered significant holes in the three key technologies sailors use to navigate: GPS, marine Automatic Identification System (AIS), and a system for viewing digital nautical charts called Electronic Chart Display and Information System (ECDIS).”

From the Journal of Commerce:

A sophisticated computer attack launched from China stole financial records, customer data and shipment manifests from as many as seven shipping and logistics companies, using handheld scanners infected with malicious software to crack through corporate security systems.

The first cyberattack known to specifically target global shipping companies raises concerns about the security of supply chain information management systems, especially when a plethora of new peripheral devices are being plugged into enterprise-wide computing systems.

For more information:

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Canadian Pacific logs best-ever quarterly financial results

Increases were led by U.S. and Canadian grain. Excerpts from Progressive Railroading:

Canadian Pacific this week announced its second-quarter financial results were the strongest-ever quarterly results in the railroad’s history.

Total revenue climbed 12 percent to $1.7 billion, operating income jumped 40 percent to $587 million and reported net income soared 48 percent to $371 million, or $2.11 per diluted share, compared with second-quarter 2013 results (all figures are in Canadian dollars). In addition, the operating ratio dropped 6.8 points to 65.1, volume rose 3 percent to 689,000 units and operating expenses increased only 2 percent to $1.09 billion.

Revenue gains by commodity group include Canadian grain, 32 percent to $252 million; U.S. grain, 26 percent to $115 million; crude oil, 18 percent to $114 million; metals, minerals and consumer products, 18 percent to $170 million; domestic intermodal, 17 percent to $200 million; coal, 15 percent to $165 million; chemicals and plastics, 12 percent to $155 million; and potash, 6 percent to $101 million.

More at Progressive Railroading

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Market share, TEU capacity position Maersk, MSC as top global shipping lines

AP Moller Maersk, Mediterranean Shipping Company and CMA CGM Group have emerged as leaders in the global shipping business on the global ranking for shipping liners based on their market share as well as the twenty-foot equivalent units (TEUs) capacity of containers they handle.

According to alphaliner.com, APM-Maersk, which took the first position, handles about 2,760,905 TEUs of containers annually and controls 15 percent of the global market share, while MSC, which handles annual throughput of 2,486,112 TEUs of containers, also controls 13.5 percent of the world market share.

More at Business Day

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PMA and ILWU Provide Update on Contract Talks

Click to download news release

Click to download news release; text below

SAN FRANCISCO (July 18, 2014) – The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) today issued the following statement:

After several days of ongoing talks, both parties will break from negotiations next Monday and Tuesday in order for the ILWU to convene its previously scheduled Longshore Division Caucus in San Francisco.

Negotiations are scheduled to resume Wednesday.

No talks will take place July 28 to Aug. 1 so the ILWU can resume unrelated contract negotiations in the Pacific Northwest.

The previous labor contract covering nearly 20,000 longshore workers at 29 West Coast ports expired July 1. While there is no contract extension in place, both parties have pledged to keep cargo moving.

The coast-wide labor contract is between employers who operate port terminals and shipping lines represented by the PMA and dockworkers represented by the ILWU. The parties have negotiated a West Coast collective bargaining agreement since the 1930s.

# # #

Contacts:
Craig Merrilees, ILWU, (415) 775-0533, ext. 113 (o), (510) 774-5325 (c)
Wade Gates, PMA, (415) 591-4080, pmanews@bm.com

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ILWU talks to recess Monday for union caucus

Contract negotiations between the International Longshore and Warehouse Union and the Pacific Maritime Association will recess beginning Monday for a previously scheduled union caucus.

It is not unusual for the ILWU to call caucuses from time to time, although next week’s meetings “will certainly cover the contract negotiations,” ILWU spokesman Craig Merrilees said.

Caucus members are democratically chosen delegates who were elected from each local union. Those delegates determine the agenda and the topics to be discussed.

More at the JOC (free registration required)

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