Cargo Business Newswire

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Monday, January 23, 2012

Massport to lay off 25 in wake of COSCO service suspension

The Massachusetts Port Authority will reportedly lay off approximately 25 longshoremen and clerks at its Conley Terminal on the heels of the decision by China Ocean Shipping Company would suspend its U.S. East Coast-Southeast Asia service.

The Boston Globe reports the loss of the COSCO service launched last May that transited the Suez Canal would mean Massport drops about 1,000 TEUs per week, or a third of Conley Terminal’s business.

COSCO is reportedly also eliminating its Suez Canal transits to the ports of New York-New Jersey and Norfolk, Virginia.

“COSCO’s business, like everyone’s business, to be honest, is off,’’ said company spokesman Gene Hartigan to the Boston Globe.

Conley Terminal reportedly lost $6 million in operating revenue last year, and the loss of the Suez Canal service could mean a $12 million loss this year, Massport officials told the Globe.

Wages for longshoremen and clerks at the terminal, who belong to the International Longshoremen’s Association, are scheduled to increase a reported 14 percent on average this year.

For the full Boston Globe story: articles.boston.com