Longshoremen Talks to Resume Next Week, as Shippers, Ports Prepare for Strike
Negotiators for an East Coast-Gulf longshoremen contract agreed to continue meeting next week, at least until Dec. 18, in Newark, N.J., officials said (here). The talks will continue with a small negotiating committee, they said after talks Dec. 10-12 in Delray Beach, Fla. The parties have agreed to make no statements about the talks, and have not even confirmed press reports that the union has authorized International Longshoremen's Association President Harold Daggett to call a strike Dec. 29 if the talks fail.
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If picketing occurs, it would affect container and roll-on, roll-off cargo covered by the ILA-U.S. Maritime Exchange coast-wide master contract, according to a FAQ published by Port of Virginia (here). But it said the longshoremen would continue to work breakbulk cargo. Perishables and military cargo would be exempt, the port said.
"We remain optimistic and hopeful that an amicable resolution to the negotiations between the ILA and management can be reached," a Port of New Orleans spokesman said. "A work stoppage at this time would interrupt the slow steady national economic recovery process and this could be detrimental to all parties." He said port officials have had informal discussions with local terminal operators and labor unions to "ensure an orderly transition to a new contract."
Meanwhile, shippers and others are beginning to make plans in the event of a longshoremen strike. For example, CargoTrans notified its customers of U.S. East Coast congestion surcharges that will take effect Dec. 30 if the labor issues are not resolved. It said the congestion surcharges are estimates and may vary depending on the ship lines, but said they would be about $1,000 for 20-foot container, and $1,200 for 40- and 45-foot containers.
CargoTrans urged customers to contact its Import Forwarding dept ASAP to reroute any containers to Canadian ports or the West Coast, and noted that any containers at any East Coast or Gulf terminals on or after a strike date "are in risk of being trapped at the terminals." It also said customers should begin exporting "in advance and as soon as possible. While this might be costly, as cargo might have to be stored and warehoused at overseas destinations not to mention inventory costs, it is a far better alternative than waiting to ship later." (here)
Ports are also preparing. Virginia International Terminals, for example, said it has made the following plans, in a FAQ on its website (here):
- It plans extended and weekend gate hours prior to and after any work stoppage to minimize impacts of the delay.
- The ILA has said breakbulk will not be impacted; breakbulk work will be dependent upon a local contract. Ro-Ro commodities are covered by the Master Contract and will be subject to the Master Contract agreement.
- The ILA will monitor reefer units, but at this time containers will not move out of the port. The management representatives are currently reviewing special conditions and provisions. In the event of a work stoppage reefer units on terminal will be monitored and mechanically serviced, but no cargo would be received or delivered.
- Vessels will be handled in accordance with arrival and departure schedules while taking into account other variables such as canal appointments on a case-by-case basis.
- Container equipment will not be delivered or received in the event of a work stoppage.