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West Coast Port Congestion Update:
PMA Calls for Federal Mediator Intervention
Source: NCBFAA
The Pacific Maritime Association (PMA), which represents employers at 29 U.S. West Coast ports, is calling for federal mediation in its contract negotiations with the ILWU. "After seven months of negotiations, we remain far apart on many issues," said PMA spokesman Wade Gates. "At the same time, the union continues its slowdowns, walk-offs and other actions that are having impacts on shippers, truck drivers and other local workers - with no end in sight. It is clear that the parties need outside assistance to bridge the substantial gap between us."
While the PMA hoped a resolution could be reached without federal intervention, the latest series of talks ended with differences remaining, resulting in the PMA's call for mediation to bring the negotiations to a conclusion. "The union's continued actions are creating long-term - even permanent - damage to the West Coast, hastening the continued loss in market share to ports on the U.S. East and Gulf coasts, with shippers rerouting cargo away from West Coast ports.” Given the disruptive impact ongoing ILWU work slowdowns are having at major West Coast ports, the PMA's call for intervention was made. Whether the call for mediation will be successful or not is unclear.
In a statement, the Federal Mediation and Conciliation Service said "in light of PMA's request, and consistent with the voluntary nature of the mediation process, FMCS mediators will promptly reach out to the parties to determine whether and when mediation assistance would be most valuable." The FMCS will provide mediation if both sides request help, but it is not clear if the ILWU will support the call for a mediator.
FMCS notes its mediators have limited powers. They "may make suggestions and offer procedural or substantive recommendations with the agreement of both parties; however, they have no authority to impose settlements. Their only tool is the power of persuasion." While many have called for the president to invoke the Taft Hartley Act to appoint a federal mediator, Taft Hartley can only be invoked after a strike or lockout has occurred.
The adverse impact on the ports is clearly visible as the port of Oakland has eight containerships at anchor in San Francisco Bay Sunday afternoon while ships are off schedule in Los Angeles and "arriving on top of each other." Drewry said its online Carrier Performance Insight reported that transpacific ships were on average 2.4 days later than scheduled in November, more than twice the normal deviation. "On-time percentage for ships calling at either Los Angeles or Long Beach is down to only 41 percent in October and 46 percent in November, when it had been around 90 percent in July," it said.
In a related action, the NCBFAA joined with another 165 organizations to sign on to the West Coast Port Labor Negotiations Coalition’s letter to President Obama seeking his help to move negotiations to mediation in order to hopefully bring this matter to a close.
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As always, we will closely monitor the situation and provide you with periodic updates. We thank you for your understanding and continued support. Please do not hesitate to contact your customer service representative if you have any questions or concerns.
Thank You,
The CargoTrans / MariTrans / DFS Team
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