Cargo Business Newswire Archives
Summary for December 3, 2012 - December 7, 2012:

Monday, December 3, 2012

Top Story

Clerical worker strike continues for 7th day at ports of Los Angeles and Long Beach

Contract talks heated up Sunday between the striking Office Clerical Unit of ILWU Local 63 and the Los Angeles/Long Beach Harbor Employers Association. The office workers strike, honored by the 10,000 longshoremen working at the port, has shut down business at the ports of Los Angeles and Long Beach since Tuesday. Talks are expected to continue Monday.

Currently, about 12 container ships are anchored offshore, unable to unload or load cargo until a strike resolution. Ten more are scheduled to arrive today, said Dick McKenna, executive director of the nonprofit Marine Exchange of Southern California, which tracks ship traffic in the ports.

"[Monday] will be a bit of an issue," McKenna said Sunday.

Over the weekend, Los Angeles Mayor Antonio Villaraigosa wrote a letter to both sides of the dispute, asserting that 24-hour bargaining is needed and that an arbitrator should be brought in to help resolve the conflict.

"This cannot continue," Villaraigosa said in the short note to John Fageaux Jr., president of the union's clerical unit, and Stephen L. Berry, chief negotiator for the employers group. "With thousands of members of other ILWU locals now honoring picket lines," the strike is "costing our local economy billions of dollars. The cost is too great to continue down this failed path."

On Sunday, the Harbor Employers Association announced that they had offered concessions on new hires but that they had been rejected. The employers also called for a mediator to be brought in.

The ILWU's main concern has been losing jobs through attrition without new people being hired to replace them. The clerical workers have been on the job without a contract since June 30, 2012. "We need the employers to stay at the table until the job is done," Union spokesman Craig Merrilees said.

The ILWU Local 63 Office Clerical Unit wants to protect employment for as many of their members as possible, while the Harbor Employers Association seeks to give the ports more flexibility to limit the number of temporary and full-time office workers they hire.

If the strike lasts, ships will start rerouting to Oakland, California, or Seattle ports, impacting railroads, truckers and warehouse operators, said John C. Martin, an economist at Martin Associates. Perishables such as fruits and vegetables might start to rot, and shipping lines will have to spend as much as $70,000 more a day to operate vessels, he said in a telephone interview to Bloomberg.

The National Retail Federation wrote a letter to President Obama last week, asking him to help with stalled contract negotiations. "A prolonged strike at the nation's largest ports would have a devastating impact on the U.S. economy," read the letter from NRF President and CEO Matthew Shay to Obama.

The strike is the largest work stoppage at the ports in ten years, according to Reuters.

For more of the Los Angeles Times story: latimes.com

Survey: China's manufacturing industry grew in November

China's manufacturing grew in November, another indication that Beijing's economy is stabilizing and recovering from the global downturn, according to a state-approved survey.

The China Federation of Logistics and Purchasing's monthly purchasing managers' index increased to 50.6 on a 100-point scale on which numbers above 50 indicate activity is escalating. That was a 0.4 points uptick from October's rate.

The PMI index measures manufacturing activity by analyzing data on orders, employment and actual production.

The November data indicates "economic growth will keep rising in the future by a small margin and in a mild way," said Zhang Liqun, an analyst with the Development Research Center of the State Council, a government think-tank, said in the report.

For more of the Fox News story: foxnews.com

FedEx to raise shipping rates again January 7

FedEx plans to hike its ground and home delivery shipping rates by 4.9 percent on January 7. The company also said it will raise its SmartPost rates.

This is in addition to a 3.9 increase in FedEx Express rates previously announced for U.S. domestic, export and import services, also effective January 7.

In July, FedEx raised its rates by 6.9 percent.

For more of the Washington Post story: washingtonpost.com

NY/NJ ports commerce director talks about Sandy damage

Although the ports started loading and unloading cargo within a week of Hurricane Sandy, due to storm damage it will take time before work at the Ports of New York and New Jersey will go back to normal.

Overall, the ports are operating at about 70 to 80 percent capacity, according to Dennis Lombardi, the Port Authority of New York and New Jersey's port commerce director.

More than 50 ships on the way to New York and New Jersey had to be rerouted to other ports after the storm, Lombardi said. Those vessels carried about 15,000 cargo containers and 9,000 autos.

Lombardi said the ports suffered widespread damage to offices, equipment and infrastructure.

Since it experience five days without power, the Port Authority is placing primary importance on developing a localized power system that runs on diesel or natural gas, said Lombardi Friday to a commercial real estate trade group.

Other measures the ports are considering to mitigate damage in the future include relocating overhead electric lines underground, upgrading electrical substations and fast-tracking improvements to drainage, sewage and fire protection systems.

For more of the SF Gate story: www.sfgate.com

Coast Guard officer killed in operation at sea by suspected smugglers

A U.S. Coast Guard officer was killed Sunday when suspected smugglers in a panga rammed his boat off the Ventura Country coast.

"We are deeply saddened by the loss of our shipmate," said Adm. Robert J. Papp, the Coast Guard commandant. "Our fallen shipmate stood the watch on the front lines protecting our nation, and we are all indebted to him for his service and sacrifice."

Chief Petty Officer Terrell Horne III, 34, was second in command of the Halibut, an 87-foot patrol cutter based in Marina del Rey. The Halibut was sent out early Sunday morning to investigate a boat near Santa Cruz Island.

The boat was suspect because it was running in the middle of the night without lights and was a panga-style vessel, an open-hulled boat that has become "the choice of smugglers operating off the coast of California," according to Coast Guard spokesman Adam Eggers.

When Horne and his team approached in the cutter's small, agile, rigid-hull inflatable, the suspect boat gunned its engine, rammed it and fled.

The impact knocked Horne and another Coast Guardsman into the water. Although both were quickly retrieved, Horne had suffered a traumatic head injury. He was rushed to shore aboard the Halibut. Paramedics met the Halibut at the pier and declared Horne dead at 2:21 a.m.

For more of the Los Angeles Times story: latimesblogs.latimes.com

 

Tuesday, December 4, 2012

Top Story

L.A. Mayor says federal mediator to step in as clerical strike enters eight day

Los Angeles Mayor Antonio Villaraigosa announced at a news conference in Wilmington today that the Los Angeles-Long Beach Harbor Shipping Association and the union representing 800 clerical workers would be bringing in a federal mediator in an attempt to end what has now been an eight-day strike that has shut down the number one and two container ports in the U.S.

The office worker picket line, honored by 10,000 port dockworkers, has shut down business at 10 of 14 container terminals at the ports of Los Angeles and Long Beach since Tuesday, November 27.

At least 11 freighters rerouted to unload cargo to ports in Northern California, Mexico and Panama, according to the Maritime Exchange of Southern California, which tracks shipping in the region.

Another 11 ships were anchored off the Los Angeles-Long Beach complex, unable to unload, said Dick McKenna, executive director of the Maritime Exchange.

"Shippers are a conservative bunch. If there is no reliability at the ports of Los Angeles and Long Beach, they'll go someplace else," said Steve Getzug, a spokesman for the Harbor Employers Association, representing shipping companies and terminal operators in the contract negotiations.

The Harbor Trucking Association called for the Federal Maritime Commission to exert pressure on both sides to come to a quick compromise.

Although the strike is estimated to cost the economy $1 billion per day, including lost wages of dockworkers, truckers and others stalled by the shutdown and the value of cargo rerouted by shippers, the good news is that the shutdown is happening after the peak pre-holiday shipping season, limiting the range of its ripple effect.

Target and Home Depot reportedly said the strike has not had much of an impact on them since the lion's share of their holiday inventory has already made it to stores.

On Sunday, the Harbor Employers Association announced that they had offered concessions on new hires but that they had been rejected. The employers also called for a mediator to be brought in.

The ILWU's main concern has been losing jobs through attrition without new people being hired to replace them. The clerical workers have been on the job without a contract since June 30, 2012. "We need the employers to stay at the table until the job is done," Union spokesman Craig Merrilees said.

The ILWU Local 63 Office Clerical Unit wants to protect employment for as many of their members as possible, while the Harbor Employers Association seeks to give the ports more flexibility to limit the number of temporary and full-time office workers they hire.

The National Retail Federation wrote a letter to President Obama last week, asking him to help with stalled contract negotiations. "A prolonged strike at the nation's largest ports would have a devastating impact on the U.S. economy," read the letter from NRF President and CEO Matthew Shay to Obama.

The strike is the largest work stoppage at the ports in ten years.

For more of the Reuters story: reuters.com

Coalition of 100 trade associations asks Obama to step in

A coalition of 100 trade associations representing manufacturers, farmers, wholesalers, retailers, and transportation and logistics providers wrote to President Obama Tuesday to express their concern about the clerical worker strike that has closed down the ports of Los Angeles and Long Beach since last Tuesday, November 27.

The Obama administration has made little comment besides urging the two sides to come to an agreement yesterday.

The letter expressed concern that shipping lines are diverting cargo to ports in Canada and Mexico to avoid the strike, and that the ones that haven't yet rerouted are beginning to back up in the harbor. The coalition noted that port terminal operators are running out of room to store empty containers, and that even an immediate stoppage would result in weeks of backlogged work.

The letter from the coalition, which includes the National Retail Federation, the Agriculture Transportation Coalition, the National Cotton Council, the Harbor Truckers Association and the American Association of Railroads, warns of the serious consequences of a longer strike.

The coalition says a prolonged strike could result in exporters failing to meet delivery times for Asian customers. They said perishable cargo exporters will suffer losses due to rotted goods and agricultural interests would be forced to funnel export production to domestic use, or freeze produce and lose a significant profit. The letter also noted that retailers would experience long delays and that importers, wholesalers, and U.S. consumer brands would face order cancellations if they cannot meet delivery dates.

Mexico's Port of Ensenada benefits from L.A./Long Beach strike

The strike that has closed the ports of Los Angeles and Long Beach has rerouted ships to Mexico's Port of Ensenada. It has become a boon for the port, located just 50 miles south of the California-Mexico border.

"It's good for the workers' families," said Gonzalez, adding that the extra work will pay for additional Christmas presents. "We all know it's temporary, but it definitely helps out at the end of the year."

Long regarded as a backup port, Ensenada is motivated to win more business from shipping companies inconvenienced by the second major work shutdown at the L.A. and Long Beach ports in a decade.

Ensenada usually welcomes the occasional cruise ship and about six cargo ships a week. Two ships have made unscheduled calls and unloaded cargo here in the past week. Three others have docked in Manzanillo, a Mexican port 1,200 miles to the south of Ensenada.

"It's a great opportunity to show that the Port of Ensenada presents an alternative method for bringing in products from Asia and the Pacific Rim," said Kenn Morris, president of Crossborder Group, a San Diego consulting firm. "The Ensenada port can really show itself off as being something a lot of people hadn't expected."

In Ensenada, longshoremen quickly unloaded 100 TEUs from the Maersk Merlion. The container ship was diverted over the weekend and docked early Monday morning.

The Southern California strike continues Tuesday, with talks continuing but no sign of an immediate resolution.

Fore more of the Los Angeles Times story: latimes.com

Georgia governor and Atlanta mayor express resolve to deepen Savannah River

Georgia Gov. Nathan Deal and Atlanta Mayor Kasim Reed renewed their resolve Monday to expand the Port of Savannah for the benefit of the state economy.

Speaking before the Rotary Club of Atlanta, the men said port expansion was their priority for the next year. The $652 million project, subject to a lawsuit in South Carolina, was approved by the Army Corps of Engineers earlier this year but does not yet have federal funding.

Deal said he would ask the Georgia Legislature in January to sanction an added $50 million for the project, which brings the state's total contribution to more than $231 million.

The dredging project would deepen the Savannah River shipping channel to 47 feet, deep enough to accommodate the supersized post-Panamax vessels that will come to call after the Panama Canal expansion is completed in 2014.

For more of the Atlanta Journal-Constitution story: www.ajc.com

8 missing from sunken cargo ship off Turkey

A cargo ship sank off Turkey's Black Sea coast on Tuesday. Initially 12 were reported missing, including 11 Ukranians and one Russian. Three survivors were retrieved from the sea, however, one man died shortly after being rescued.

Rescuers continue to search for the 8 missing sailors in rough seas.

The cargo ship Volgo-Balt 199 was hauling 33 tons of coal from Russia to Antalya. Radio contact with the crew was lost at 10:00 a.m. local time, and there are conflicting reports as to whether or not an SOS signal was issued.

The crew reportedly lost control of the ship's rudder, and the ship was driven into the shoreline, according to local station NTV.

For more of the RT.com story: euronews.com

 

Wednesday, December 5, 2012

Top Story

Strike over at ports of Los Angeles and Long Beach, both sides agree on clerical worker contract

Wednesday marks the end of the strike that had shut down the ports of Los Angeles and Long Beach, the number one trade complex in the U.S., since November 27. The clerical employees are returning to work today.

The Office Clerical Unit of ILWU Local 63 and the Los Angeles/Long Beach Harbor Employers Association concluded their contract talks late Tuesday, coming to an agreement that will be official once ratified by the full union membership.

At least 20 container ships were rerouted to unload in ports in Northern California, Mexico and Panama, and many freighters were anchored offshore waiting for a resolution.

"The retail community is pleased to see a settlement of the strike," said National Retail Federation president and CEO Matthew Shay. "The nation's largest port facility is now operating and will hopefully be able to quickly recover from the shutdown.

"Our attention now shifts to the East and Gulf Coast ports, where federal mediators have been locked in prolonged discussions with labor and management for the past two months. We urge the parties to reach a final agreement before their contract extension ends at the end of December. Our economy cannot withstand another port disruption."

Los Angeles Mayor HYPERLINK "http://www.latimes.com/topic/politics/antonio-villaraigosa-PEPLT007500.topic"Antonio Villaraigosa called in two federal mediators Tuesday morning, which pushed the unions into a faster deal, fearing a loss of negotiating power once the mediators took over.

"Mission accomplished. This has been a long eight days, but it's a great day for everybody now that a deal has been reached," said Mayor Villaraigosa, a former union leader.

The ILWU's main concern has been clerical jobs being lost through attrition and outsourcing. The clerical workers have been on the job without a contract since June 30, 2012.

Steve Berry, lead negotiator for the Los Angeles and Long Beach Harbor Employers Association said there will be "no outsourcing under this contract."

Berry said the package included unspecified wage and pension increases. He said additional job security was attached to the deal, which included a "no layoff" clause that would go into effect once ratified.

The contract, retroactive to June 30, 2010, will last for six years. It will be set to expire on June 30, 2016.

For more of the Los Angeles Times story: latimes.com

Kearney Page warehouse facility to open April 2013 at Port of Savannah

High tech warehouse services are coming to the Port of Savannah. Kearney Page Warehouse Services will create the new facility in a joint venture between The Kearney Companies of New Orleans and Page International of Savannah, according to a statement issued Tuesday.

The facility will be located less than two miles from the Savannah port's main container terminal and will have direct CSX rail service. The Kearney Page venture will support approximately 20 local jobs once the rail service is fully operational on April 1, 2013.

"This joint venture marks a major expansion of The Kearney Companies' third party logistics service offering. We are proud to continue to develop cutting edge logistics solutions with Page International and CSX," said David W. Kearney, president of the new Kearney Page Warehouse Services.

The facility will support container exports of paper, cotton, lumber, metals, food products and consumer goods, the announcement said. Operations will be served five days a week by CSX, which in 2011 invested nearly $84 million in its Georgia freight rail network.

By shifting freight to rail, Kearney Page Warehouse Services will reduce their customer's fuel consumption and transportation costs, the statement said.

Port of Seattle Commission approves 25-year plan

On Tuesday the Port of Seattle Commission approved an ambitious 25-year program that will help create 100,000 new jobs while reducing port pollution.

"We established bold, achievable goals for the port and regional stakeholders in our Century Agenda," said John Creighton, Port of Seattle commissioner. "It builds on the 100-plus-year role the port has played in creating economic growth for the Puget Sound region and the state of Washington."

The agenda outlines four objectives for the port to pursue with its business partners and stakeholders.

The first major objective is to position Puget Sound as the premier international logistics hub, and includes plans to grow annual container volumes to more than 3.5 million TEUs and tripling the value of outbound cargo to more than $50 billion.

The second goal is to advance the area as a leading tourism destination and business gateway, using both Sea-Tac Airport and existing cruise ship activity. Measure details include doubling the number international flights and destinations and doubling the economic value of cruise traffic to Washington state.

Third, the port's influence will be used to promote small business growth and workforce development, increasing the use of qualified small business firms on construction, goods and services to 40% of the eligible dollars spent.

And finally, Port of Seattle will strive to be the greenest and most energy efficient port in North America. Over the next 25 years, the port will implement a plan to reduce energy use, air pollutants, carbon emissions and storm water runoff.

Port of Miami group courts container business in China

A delegation from the Port of Miami met more than 70 manufacturers, investors and government officials in Beijing yesterday, in an effort to attract China's business to the port.

This comes at a time when U.S. East Coast ports are vying for a piece of the expanded cargo market expected when the Panama Canal expansion is completed in 2015.

U.S. ambassador to China Gary Locke and the U.S. Chamber of Commerce supported the meeting, which focused on Port Miami's plan to build a World Trade Center Tower for Chinese multinationals, according to Kevin Lynskey, assistant port director of Port Miami. Cosco Container Lines is rumored to have approached Port Miami to launch services at the port and talks are also expected to cover the development of a large complex in Florida.

Some of the companies present include Anshan Iron and Steel, car and bus maker BYD, China Communications Construction, CNOOC, white goods producer Gree and Dalian Wanda Commercial Properties.

For more of the South China Morning Post story: scmp.com

18 people hospitalized from toxic fumes emitted from docked cargo ship

Eighteen people were hospitalized in Ireland after toxic fumes were emitted from a cargo ship in County Down at Warrenpoint harbour. A perimeter of 50 meters was established and locals were advised to keep windows and doors closed as police and emergency personnel examined the leak.

There is concern that aluminum phosphyde gas leaked out after the ship's cargo became wet, which could make it unstable. Five people are suffering the effects of exposure to the gas.

A Northern Ireland ambulance spokesman said: "We have 18 patients. It is a chemical incident on a ship. Nine are en route to Daisy Hill hospital and nine are at the scene, and they will be transferred to Craigavon area hospital."

Aluminum phosphide, a pesticide, is used to kill small mammals such as moles and rodents.

For more of The Guardian story: guardian.co.uk

 

 

 

 



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