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West Coast ILWU Update
Source: JOURNAL OF COMMERCE
There has been over three consecutive months of container volume growth since the International Longshore and Warehouse Union and Pacific Maritime Association reached a contract agreement which was officially ratified on May 22. May had its busiest month in four years, handling 213,260 twenty foot equivalent container units at the Port of Oakland. These are signs that West Coast ports are slowly regaining their stride.
Oakland experienced immense congestion coupled with ILWU work slowdowns and reduced night and weekend work which began in early November and lasted through February. The Port of Oakland continues to experience congestion from the backlog and from slow movement at the port. Work stoppages in the Port of Oakland are still occurring, but are on the decline. Imports are now recovering and expecting to steadily increase as the Trans-Pacific prepares for the busy peak-shipping season coming in the late summer and fall.
In the midst of this, there is a period of adjustment to be expected in response to the ratification of the new contract. Disagreements rise between terminal operators and the ILWU in terms of implementing the new provisions and procedures covered within the contract which has resulted in work stoppages. Cargo interests and truckers have concerns on issues and disagreements that could cause problems at all West Coast ports. An example of this is seen in another provision in the contract which requires inspection by ILWU mechanics of chassis before they are pulled from marine terminals, with trucker-owned chassis exempt. Problems occurred in Northern and Southern California when ILWU locals began implementing this inspection requirement and pulled over truckers to request proof of equipment ownership. Truckers asserted that the ILWU demands were illegal because ownership of the equipment is no longer held by employers, the shipping lines and terminal operators. These checks cause unnecessary delays for truck drivers and reduce their earning power since most drivers are paid by the load and earn nothing when sitting in lines. In response to this, trucking companies in California have since reported that the ILWU has backed off a bit on its verification demands. This period of uncertainty in interpreting the new contract and adding clarity to disputed provisions could drag on for some time.
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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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