Tentative Agreement Reached on Health Benefits
The International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) announced today that they have reached a tentative agreement on terms for health benefits, subject to agreement on the other issues in the negotiations.
Negotiations Continue on Others Issues
Jurisdiction: The ILWU will want to maintain what work they have now and expand if possible. Due to the focus on productivity with more output and less labor input, the ILWU will try to bring more work under their control.
Productivity: The high cost of the West Coast ports is due to productivity being below global industry standards. The terminals will be pushing for automation and using technology to streamline operations
Congestion, Truck and Rail delays have become the norm lately in many Ports world wide as well as in the USA. Worldwide Logistics has been working through the situation and the majority of our containers are moving relatively smooth through the crisis.
Origin local and transit ports are very congested. Carriers are as well over booked. The larger than expected container volume, along with other issues such as the Vancouver and Prince Rupert Canadian Embargo for US bound cargos have added to the normal high volumes of cargo. For these reasons, both East Coast and West Coast vessels remain over booked at this time. Although we all should be booking cargo at least 2 weeks in advance, vessels are fully allocated with bookings, in some cases, a month in advance. WWL is managing to to move your cargo as booked, but keeping a lid on the rates is a challenge right now with shippers willing to pay well over $1000 more in rates over a month ago, to get on ships. We are doing everything we can to keep a lid in these increases.
Carriers are taking advantage of the situation by enacting Peak Season, Revenue Recovery and/or General Rate Increases. We believe this situation will be relieved no later than by mid-October, if not earlier.
Truck shortages are evident in many inland ports right now. Many Ports are very congested, including LA and Long Beach, with truckers experiencing up to 8 or more hours on line to retrieve containers. They have begun to charge waiting time at the ports, which for many of them is a first. Warehouses are backlogged causing containers to sit for days or weeks in some cases without being de-vanned. This is causing additional Chassis, Per diem, and Bob-tail / dead-head charges (tractors leaving the yard without and empty return).
We have seen some terminals in LA/LB take up to a month to move containers off the port. This is the exception but many carriers are experience major back logs of freight which were initially caused by Teamster Wildcat work actions and have been struggling to recover. Savannah is backlogged 3-4 days, Norfolk as much as 10-12 days delay to access the rail. Rail almost everywhere is slow and congested, and is building especially with the extra volume added from the Vancouver embargo.
Negotiations between the ILWA and PMA on the west Coast is progressing. Some smaller issues have been agreed upon but the mjor issues remain unresolved for now.
We will continue to monitor all of the above issues closely and keep you apprised of any updates.