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Summary for February 24, 2014 through February 28, 2014:
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Monday, February 24, 2014 Top StoryEvergreen to join existing partners to establish CKYHE Alliance
JaxPort awards ICTF design/build contractJaxPort announced this week it has made a deal for an intermodal container transfer facility to be built and designed by The Dana B. Keynon Company. The ICTF, to be located at Dames Point, will facilitate the direct transfer of containers between ships and trains. "The construction of an ICTF is an absolute requirement for our port to remain competitive and to ensure we are offering the best services to our customers," said JaxPort CEO Brian Taylor. Expected open for business in 2015, the port says the new complex will provide existing and future customers with enhanced intermodal connections, including direct access to CSX rail lines and the U.S. highway system, including I-95, I-10, I-295 and I-75 via I-10. The Jacksonville, Florida port has issued a request for proposals from qualified firms to serve as a Rail Yard Operator, which will be responsible for the management, maintenance and operations of the ICTF. G6 Alliance announces 17 new proposed port rotationsThis week, members of the G6 shipping alliance released the proposed service expansion for the Asia-North America West Coast and Trans-Atlantic trades. G6 Alliance members include APL, Hapag-Lloyd, Hyundai Merchant Marine, After the completion of the regulatory review process, the 17 services are The G6 Alliance will cover all three major East-West trade lanes, operating a total of 29 services. Members will continue to market these services individually as they do today. The proposed port rotations are as follows: Asia-North America West Coast (12 services) SE1 (South East Asia 1): Singapore - Chiwan/Shekou - Kaohsiung - Los Angeles - (Manzanillo, Mexico*- Lazaro Cardenas*) - Los Angeles - Yokohama - Kaohsiung - Singapore (*only APL and Hapag-Lloyd are participating in these calls) SE2 (South East Asia 2): Laem Chabang - Cai Mep - Hong Kong - Los Angeles - Oakland - Hong Kong - Laem Chabang SE3 (South East Asia 3): Port Klang - Singapore - Laem Chabang - Yantian - Los Angeles - Oakland - Pusan - Shanghai (Waigaoqiao) - Ningbo - Yantian -Singapore SC1 (South China 1): Xiamen - Chiwan/Shekou - Yantian - Los Angeles - Oakland - Kaohsiung - Xiamen SC2 (South China 2): Dachan Bay - Hong Kong - Yantian - Kaohsiung - Los Angeles - Kaohsiung - Xiamen - Hong Kong - Dachan Bay CC1 (Central China 1): Shanghai (Waigaoqiao) - Kwangyang - Pusan - Los Angeles - Oakland - Pusan - Kwangyang - Shanghai CC2 (Central China 2): Ningbo - Shanghai (Waigaoqiao) - Los Angeles - Ningbo CC3 (Central China 3): Qingdao - Xingang - Pusan - Yokohama - Los Angeles - Oakland - (Dutch Harbor*) - Yokohama - Pusan - (Naha*) - Qingdao (*only APL) CC4 (Central China 4): Shanghai (Waigaoqiao) - Ningbo - Los Angeles - Oakland - Shanghai NP1 (North Pacific 1): Singapore - Laem Chabang - Dachan Bay - Hong Kong - Yantian - Vancouver - Tacoma - Seattle - Pusan - Kaohsiung - Singapore NP2 (North Pacific 2): Hong Kong - Yantian - Kaohsiung - Shanghai* - Pusan - Tacoma - Seattle - Vancouver - Yokohama - Pusan - Kwangyang - Hong Kong NP3 (North Pacific 3): Qingdao - Ningbo - Shanghai (Yangshan) - Pusan - Vancouver - Tacoma - Vancouver - Tokyo - Nagoya - Kobe - Qingdao Trans-Atlantic (5 services) AX1 (Atlantic Express 1): UK port* - Rotterdam - Hamburg - Le Havre - New York - Norfolk - UK port* (*terminal to be confirmed) AX2 (Atlantic Express 2): Southampton - Antwerp - Bremerhaven - Le Havre - Veracruz - Altamira - Houston - New Orleans - Charleston - Southampton AX3 (Atlantic Express 3): Antwerp - Bremerhaven - Southampton - Charleston - Port Everglades - Houston - Savannah - Norfolk - Antwerp PA1 (Pacific Atlantic 1): Shanghai* - Pusan - Kobe - Nagoya - Tokyo - Tacoma - Vancouver - Oakland - Los Angeles - Balboa** - Panama Canal - Manzanillo, Panama - Savannah - Norfolk - New York - Halifax - Southampton - Antwerp - Hamburg - Rotterdam - Halifax - New York - Norfolk -Savannah - Manzanillo, Panama - Panama Canal - Los Angeles - Oakland - Yokohama – Shanghai (*terminal to be confirmed ** to be confirmed) PA2 (Pacific Atlantic 2): Kaohsiung - Pusan - Kobe - Tokyo - Balboa - Panama Canal - Manzanillo, Panama - Miami - Jacksonville - Savannah - Charleston - New York - Rotterdam - Bremerhaven - UK port* - Le Havre - New York - Norfolk - Charleston - Manzanillo, Panama - Panama Canal - Balboa - Los Angeles - Oakland - Tokyo - Kobe – Kaohsiung (*terminal to be confirmed) Union Pacific Chairman Jim Young diesUnion Pacific Corporation Chairman James R. (Jim) Young, who worked his way from an entry-level finance position to chairman, president and chief executive officer, died Saturday after a two-year battle with pancreatic cancer, according to a company statement. He was 61 years old. "Jim was an icon at Union Pacific and in the railroad industry, a colleague and great friend," said Jack Koraleski, Union Pacific president and CEO. "Jim's vision and leadership took Union Pacific to unparalleled heights and his civic contributions made positive impacts on many communities across Nebraska and the entire Union Pacific system. "Most importantly, he was a dedicated and loving husband, father and grandfather. He will be greatly missed." A lifelong Omaha resident, Young was elected Union Pacific Corporation chairman in January 2007. He served as president and chief executive officer from November 2005 until March 2012. Previously, Young was Union Pacific Railroad president and chief operating officer, a position he had held since January 2004. He was elected a director of Union Pacific Corporation in February 2005. "We are deeply saddened by Jim Young's passing," said Steve Rogel, Union Pacific lead director. "Jim's commitment to Union Pacific's mission and values, his tireless energy and infectious enthusiasm helped make Union Pacific an industry leader and made a lasting impression on everyone he met." Young began his railroad career with Union Pacific in 1978 and held a variety of management positions. In 1997, he was named vice president - Customer Service Planning and Quality; in 1998 was named senior vice president and corporate treasurer of Union Pacific Corporation; and in December 1999 was named chief financial officer of Union Pacific Corporation. UP's board of directors will elect a successor as chairman, per the company's governance policy. Cargo ship starts to founder in Hong Kong, 17 crew escapeFrightened crew left a listing cargo ship Friday morning and refused to re-board to turn off the engine for fear of being trapped if it sank, resulting in the 2,500-ton vessel circling until it broke down and beached at Cheung Chau yesterday. The Sunrise Orient was listing at angles of up to 45 degrees when the 17 Vietnamese crew escaped, a government official said. The ship continued on slowly before breaking down about one kilometer east of the island and drifting onto the rocky beach at Tung Wan Tsai. Work was under way to contain and clear a 100-meter oil slick from the vessel. Nobody was injured. A Marine Department investigation has been launched into what caused the accident, and why the vessel's master abandoned ship without turning off the engine. For more of the South China Morning Port story: scmp.com
Tuesday, February 25, 2014 Top StoryBuilding group resumes work on Panama Canal
After a work stoppage that lasted two weeks, a source close to the consortium led by Spain's Sacyr and Italy's Salini Impregilo said the group had resolved internal conflicts over the key issue of financing in light of the overruns. "The restarting of the work is being done in a way that will enable it to reach full pace in the shortest time possible," the consortium said in a statement. "We believe that with the discussion we had last night and the comments made, we can find a path out of this," said Panama Canal administrator Jorge Quijano. The canal authority said late on Wednesday it had agreed with the consortium to iron out a host of remaining issues, including the delivery dates of massive lock gates being built in Europe, over the next three days. Sources with knowledge of the negotiations said on Thursday a final deal on pending issues would be signed within three days. The canal authority and the consortium have agreed to deal with the $1.6 billion in cost overruns, which the consortium wants the Panama Canal to pay for, via arbitration. For more of the Reuters story: reuters.com Port of LA to focus on new customers, shipping alliances and terminal partnersPort of Los Angeles officials on Thursday presented a report to the Board of Harbor Commissioners that outlined a future business focus on new customers, shipping alliances, and terminal partnerships. The port's stated goals include increasing its container business by 3 percent annually and increasing its cruise ship passengers by 15 percent over three years. Other objectives include increasing its export business and upping its cargo support revenues and rentals by 10 percent. "This has been a long time in the making," said David Mathewson, director of planning and economic development, about the strategy outline presented to commissioners. The catalyst was a five-year plan for port goals done in 2012 that highlighted a need to grow market share and profits using strategies like customer shipping alliances and partnerships, according to Mike DiBernardo, director of port business development. The Port of Los Angeles is a global leader in container volumes because it's close to Asia and features a big local market for shipped goods, warehouse space, distribution centers and a strong labor force. The existing skilled labor in the ports of Los Angeles and Long Beach handles more than 40 percent of U.S. inbound containerized trade, according to the report. Barriers to growth include competition from other ports on both coasts, particularly from the rapid growth of Canadian and Mexican shipping ports on the West Coast. This is an issue that will figure prominently in upcoming labor contract negotiations. For more of the Press Telegram story: presstelegram.com Virginia Port Authority addresses truck back-upsVirginia Port Authority officials on Wednesday announced the formation of a new task force to deal with the truck congestion, a problem that has resulted from the port's record container volumes over the past year. The port plans an appointment system for truckers, scheduled to begin in May. The response to the chronic delays faced by truckers came as state officials are poised to review the authority's weak finances. While Hampton Roads has seen soaring container volume in the past two years, the surge in business has not translated to the authority's bottom line and, at times, has gummed up its operations. "Over the last two calendar years, we have grown by over 67,000 truck containers," Joe Harris, a Port Authority spokesman, wrote in an email. Truckers recently have begun express how the congestion is hurting them and demanding for it to stop. The appointment system that port officials say will start in May is something that truckers themselves requested. Port Authority officials said it's too early to give details of the system. Currently, truckers dropping off or picking up containers at the terminals just show up and wait their turn. For more of the Virginia-Pilot story: hamptonroads.com Drewry: Mediterranean transshipment hub ports boomingLarge Mediterranean transshipment hub ports recorded double digit growth in 2013, well above global growth levels, according to the latest issue of Container Insight from Drewry Maritime Research. Transshipment volumes at major Mediterranean hub ports spiked by an average of more than 8 percent in 2013, the report forecasts, while global container port traffic likely grew by around 3.3 percent and overall traffic in the Mediterranean seaports grew between 3 and 6 percent. Drewry attributes much of the growth for West Mediterranean hubs to increased relay transshipment activity. Carriers have been adjusting their service networks and replacing direct services with transshipment from big east-west container vessels passing through the Mediterranean. Out of the eight ports that handled more than one million TEUs of transshipment traffic, all but Valencia recorded growth, and all of the ports' volumes increased higher than the market average. Piraeus, Tanger Med, Gioia Tauro and Ambarli saw double-digit transshipment volume growth, with Tanger Med topping the list with an almost 40 percent increase. Drewry said it seems as though increasing vessel sizes and carrier alliances are benefiting mega-hubs for the first time since 2006, when the level of hub port efficiency became unsatisfactory to ocean carrier lines, and they started launching more direct services. The report notes the three ports that achieved the highest growth in transshipment traffic in 2013 – Sines (76 percent), Tanger Med (38 percent) and Piraeus (19 percent) – all have direct or indirect links with major carriers. Sines is backed by MSC, Tanger Med has CMA CGM and Maersk Line and Piraeus has Cosco through ownership of the port's main terminal by Cosco Pacific. Maersk ship loses 500 containers in high windLast week, the Svendborg Maersk was struck by hurricane-force winds and waves off the coast of France after it left the Bay of Biscay, and when it arrived at Spain's Malaga port, more than 500 containers were lost. It's the biggest known loss of containers overboard in a single incident. Palle Laursen, Maersk's vice president of operations, says the company is examining its procedures "to avoid similar incidents in the future." Maersk said 85 percent of the lost containers were empty, and others included such dry goods as frozen meat. The shipping line is now notifying customers to tell them that their shipments are at the bottom of the sea. For more of the CNN story: cnn.com
Wednesday, February 26, 2014 Top StoryLong Beach Harbor Department travel audit finds lack of oversight, high costs
The city audit found that limited oversight led to decentralized system in which travel planning was conducted in a haphazard manner – sometimes by travel agents, sometimes by the commissioners themselves. The Harbor Department, according to the audit, had high travel bills that were not questioned, inadequate documentation, and no method to keep costs under control. "The cost containment would have been more of a priority if one person was overseeing this," Doud said Thursday. The audit reviewed five overseas trips taken by commissioners between 2011 and 2013. For three of the port-related trips, the auditors found the department paid a total of almost $24,000 for spousal airfare. They found that on trips to Europe for conferences and other meetings in 2013, Thomas Fields and Nick Sramek spent an average of $14,606 per person flying with a spouse, $7,629 more than if they had traveled solo. Flying to a seminar in Montreal in 2012, Commissioner Rich Dines and Harbor President Doug Drummond spent an average of $5,074 flying with a spouse, which was $2,599 more than if they had traveled alone. Drummond said he paid for his wife's travel, although the auditor said she did not see a record of that payment. Sramek said he separated the costs carefully and that "not one penny" of department funds was spent on his wife. Doud wants the Harbor Department to implement a centralized method of tracking expenses, and to be conscientious in reviewing the cost of trips, making sure that flights and hotels are competitively priced and consistent with other traveling officials. "It is essential that the Harbor Department accept and implement the recommendations of the audit and ensure that travelers adhere to the established policies and procedures," Doud said in a statement. "I encourage management to take swift corrective action to strengthen the system and improve travel operations." For more of the Press Telegram story: presstelegram.com Retail association asks Port of NY/NJ to address freight delaysLast week the Retail Industry Leaders Association sent a letter to the Port Authority of New York and New Jersey asking them to address chronic delays at port terminals, according to an RILA press release. The association said the productivity problem was keeping retailers from meeting deadlines with regards to goods moving through the port complex. The letter said, "The disruptions that have been taking place at the port have had damaging consequences on the delivery of retailers' goods…retailers are concerned that further disruptions will take place, resulting in lost sales, empty shelves, and disappointed customers." In its letter, the RILA suggested four measures to help restore productivity. These include staffing terminals for a two-shift operation until on-dock, gate and rail operations return; conducting chassis inspections that does not put units "out of service" unless an immediate threat is detected; assigning traffic oversight to offset the effect of one terminal queue affecting others; and suspending fees that are attributable to delays until port operations return to normal. Reportedly, delays at the port complex have been ongoing for several months, but have worsened of late due to severe winter weather. "RILA members applaud the port's efforts to proactively organize a broad-based industry task force to recommend overall port improvements. However, we are concerned about the timing since the task force is not scheduled to give a report until June. Considering the current impact that the port disruption is having on retailers' supply chains, the situation needs to be alleviated immediately," said Kelly Kolb, RILA's vice president for government affairs, in the letter. Truckers ask Hampton Roads port to address chronic wait timesTruckers are calling for Hampton Roads to take action to address chronic long wait times at port terminals, saying it is hurting their ability to do their jobs. One trucker reportedly said delays that used to be an hour have grown to two or three hours per trip. The Virginia Port Authority has responded by creating the Motor Carrier Task Force, to be chaired by port COO Joseph Ruddy and with a membership that includes representatives from motor carriers, service providers, the International Longshoremen's Association, container lines, and U.S. Customs and Border Protection. The Motor Carrier Task Force will look at issues usually handled by the Port Advisory Conference, focusing on safety, turn times, gate delays, chassis availability and developing an appointment system. "One of the first issues the task force will address is the implementation of an appointment system for motor carriers that evens out the flow of traffic at the terminals throughout the day and eliminates a 'rush hour' effect," for the good," Ruddy said in a statement. Reportedly, wait times significantly worsened after Hurricane Sandy in October 2012, when port facilities to the north of Hampton Roads were damaged. For more of Daily Press story: dailypress.com Port of Houston reports record volume for 2013Last week, the Port of Houston announced record container volume and cargo tonnage for 2013. The port handled 2 million TEUs and 36 million tons of cargo last year – a 6 percent increase in container movement year-over-year, according to a statement. The Houston Port Authority said it generated a 13 percent rise in bulk cargo at 11 million tons, and posted record operating revenue in 2013 at $231 million – 4 percent higher than 2012 figures. "This is a benchmark we can all take pride in," said Roger Guenther, executive director of the HPA. "It is important we continue making capital investments in our facilities to help meet the growing needs of global commerce." Maersk container filled with cigarettes lands on British beachOne of the 500 containers that fell off the Svendborg Maersk in waters off Northern France landed in shallow water off a British beach in Devon. Police are cruising the area to keep people from pocketing a free box of soggy cigarettes. "The contents belong initially to the original owner of the container, and then to the official Receiver of Wrecks, so anyone taking anything that washes ashore, even one packet of cigarettes, is effectively committing theft and will be prosecuted," said a spokesman for Devon and Cornwall Police. The Maritime and Coastguard Agency is arranging recovery of the Maersk container. For more of the Express story: express.co.uk
Thursday, February 27, 2014 Top StoryPort Metro Vancouver truckers walk off job in protest over delays
The work stoppage by members of the United Truckers Association will affect operations at Vanterm in Burrard Inlet, and Deltaport and Fraser Surrey Docks, south of Vancouver. The independent truckers, who are paid by the load, began today's work stoppage with a morning rally off Highway 91. The non-union drivers are saying they are fed up with waiting several hours to pick up cargo at Vancouver container terminals and won't move the trucks until the port meets its demands. "We don't want to park, we've been trying to get somebody to the table to talk to us, we've been lobbying everybody," said Manny Dosange, a spokesperson for the United Truckers Association, to CTV News. "But for whatever reason, they figured the economy had to come to a stop before we could get to the table and start talking." Dosange said truckers are losing money due to the delays and they want the port to drop its charges for late and missed pick-ups until a backlog is resolved. The association has other demands for the port, including setting and enforcing new rates, addressing the licensing system, and clarifying regulations about equipment on their trucks. Reportedly, port union truckers may join the work stoppage. Unifor, the union representing a majority of the unionized truckers at the Port Metro Vancouver, has scheduled a news conference for noon. Port Metro Vancouver said that the dispute is a matter between the truckers and their employer, and insisted business will carry on as usual. In a recent statement, Peter Xotta, the port's vice president of planning and operations cited weather conditions in eastern and central North America and storms across the Pacific Ocean as the reasons truckers are experiencing extended delays. For more of the Vancouver Sun story: vancouversun.com For more of the CTV News Vancouver story: bc.ctvnews.ca Dockworkers get paid even if Hanjin leaves Port of PortlandAfter two years of labor conflict at the Port of Portland, with Hanjin Shipping poised to decide this week whether it will remain the port's biggest carrier, there has been some question as to why union dockworkers have reportedly staged slowdowns that would seemingly jeopardize their jobs. According to the Oregonian, in Section 20 of the contract between the International Longshore and Warehouse Union and the Pacific Maritime Association, there is a provision called the Pay Guarantee Plan, which requires the PMA to establish a $20 million annual fund to pay senior union members when they don't work. The policy of paying longshore workers who aren't working also may help explain why a longshore lockout by Portland-area grain terminals has lasted almost a year with no sign of resolution. Payments to the idled Portland dockworkers are running at about $17,000 a week, according to the Maritime Association. Pat McCormick, a spokesman for the grain handlers, says that in general the longstanding payment plan "creates an opportunity for union members to be kept close to whole, and that results in less incentive for them to get the dispute resolved." In the separate case of Portland container terminals, he said, the provision lowers the consequences for dockworkers if Hanjin pulls out. The pay guarantee plan was written into the ILWU contract years ago, and is funded by employers of longshoremen coast-wide through an assessment of tonnage, according to Wade Gates, a PMA spokesman. If Hanjin leaves Portland, union dockworkers will still have jobs, because ILWU members conduct all container handling at West Coast ports, and workers could be assigned to other ports. But 361 union members with seniority, called Class A and Class B longshore workers, could be eligible for guaranteed pay if work isn't available at other Portland terminals. The pay can last indefinitely, the only cap being the West Coast maximum, currently $20 million a year, Gates said. The Pay Guarantee Plan is a negotiated benefit designed to provide limited income to longshore workers when work is not offered to them and they are otherwise available to accept it, said ILWU spokeswoman Jennifer Sargent in an email to the Oregonian. For more of the Oregonian story: oregonlive.com Port Metro Vancouver handles record container volumes in 2013Port Metro Vancouver handled a record of cargo tonnage last year, including record container volumes, according to a port statement. Canada's largest port announced Monday that overall tonnage for 2013 rose 9 per cent to 135 million tons compared to 123.9 million tons handled in 2012. Compared to 2012, last year's container traffic was up 4 percent to a record total of 2.83 million TEUs. Total inbound TEUs increased 3.9 percent, while outbound rose 4.4 percent. The port attributed the increases, in part, to an increase in the export of specialty grains via container and a boost in consumer spending in Canada. "As we have acted to increase trade ties with Europe through the Comprehensive Economic and Trade Agreement, and look now to expand opportunities with Asia through the Trans Pacific Partnership," said Minister of Transport Lisa Raitt, "our forward thinking investments in infrastructure, coupled with Port Metro Vancouver's reputation as a reliable and competitive gateway, are contributing to the prosperity of Canadians across the country." Bulk cargo volume grew 11 per cent, bolstered by stronger exports of coal and grain. Cruise passenger numbers surged 22 percent in 2013, with 23 percent more calls than in 2012. Port Metro Vancouver handles 19 percent of Canada's total trade. Port of Long Beach staff moves to new digsThe Long Beach Harbor Department staff has started the move from their old port headquarters to their new temporary digs at 4801 Airport Plaza Drive, an eight-story, 176,375-square-foot facility. The employees needed to vacate their headquarters since 1960, 925 Harbor Plaza, due to concerns over seismic instability and inadequate size. "It feels great," said Noel Hacegaba, acting deputy executive director and chief operating officer. "The mood amongst staff is very upbeat and from what I've heard and seen so far, there is genuine excitement about settling into our new temporary headquarters." The staff of approximately 300 started the move in mid February, and the transition should be complete by the weekend of March 7. In 2010, Mayor Bob Foster nixed the construction of a new administration building on port land due to the high cost of the project. A second plan in 2012 involved the purchase of the World Trade Center, but was blocked by port commissioners Rich Dines and Doug Drummond. The Harbor Commission then voted to move the staff to the current new location near the Long Beach Airport in a space next to the Marriott Hotel. Staff members were originally slated to move into the interim headquarters by the end of 2013, but there were necessary repairs and renovations that added about $10 million to the original $14.25 million purchase price. The total price of the move, including move-in costs, will be about $30 million, according to the Long Beach Post. Officials said they are committed to creating a permanent downtown headquarters for the staff in the future. For more of the Gazettes story: gazettes.com Worker struck by container in stable conditionA dockworker, struck and injured by a container at Fremantle Patrick terminal in Western Australia, was reported to be in stable condition at a local hospital. The Maritime Union of Australia said other workers at the terminal had stopped work and would only return once their safety concerns had been met. MUA state secretary Christy Cain claimed the accident followed a Fair Work Commission decision that ordered workers at the terminal to increase their work rate. "We have serious concerns about this industry putting profits before safety," he said. However, Patrick's owner Asciano said there was no union walkout and that it suspended work at the site while initial accident investigations were conducted. For more of the New Zealand Herald story: www.nzherald.co.nz
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Evergreen Line will join COSCO, K Line, Yangming, an Hanjin to establish a shipping alliance on the trades between Asia and Europe, including the Mediterranean region, to be called the CKYHE Alliance, according to a joint statement from the shipping lines. 
Grupos Unidos por el Canal, the building consortium widening the Panama Canal, resumed work on Thursday, a sign that the construction group and the Panama Canal Authority may soon reach an agreement about how to deal with cost overruns in the amount of $1.6 billion.
The Port of Long Beach Harbor Department has had a lack of oversight involving its travel budget that has led to high costs and unauthorized expenses, according to a report released last week by City Auditor Laura Doud.
Approximately 1,200 Port Metro Vancouver container truck drivers are protesting long wait times and low rates today at port facilities by parking their rigs and refusing to work.