The Port of Portland commission voted on Dec. 10 to pay up to $4 million in subsidies to Hanjin and other carriers, which are at risk of avoiding the facility due to slow container movements.
The subsidies were approved over the objections of the longshoremen’s union, which is engaged in a dispute with the contractor that operates the terminal, ICTSI Oregon. The company accuses the union of staging slowdowns that threaten its relationship with carriers.
According to International Longshore and Warehouse Union, the subsidies are rendered moot by the increased rates that ICTSI is charging ocean carriers. Mike Stanton of ILWU said the subsidies are a waste of resources because ICTSI recently began charging carriers $120 more per container.
The lower productivity at the container terminal is also the fault of the company, which has been disregarding safety, said David Strader, president of the ILWU’s Local 40, which represents supercargoes and clerks.