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West Coast longshore talks resume after 10-day break
Contract negotiations between the ILWU and the PMA resumed on Wednesday in San Francisco after a 10-day break.
Negotiations to replace the current WC contract, which expires on July 1, began on May 10 but were halted on May 23 with no explanation. The ILWU and PMA are in a media blackout period, which is normal while active negotiations are underway.
Neither the PMA nor the ILWU have indicated what the major contract issues are this year, although union resistance to the spread of automation is most likely a sticking point, as it has been in previous negotiations dating back to 2002.
NY-NJ lays groundwork for larger ships ahead of dredging
Marine terminal operators in the Port of NY & NJ are planning new capacity for ultra-large container ships once new dredging is approved that would make the port one of the deepest seaports on the U.S. East Coast. The U.S. Army Corps of Engineers is seeking authorization from the U.S. Congress for dredging the port’s waterways down to 55 feet, down from their current 50 foot depth.
If approved, the dredging would make it possible for “super” post-Panamex ships of 20,000 TEU to call NY-NJ. As of now, the largest ship that called the U.S. East Coast was the 16,000 TEU CMA CGM Marco Polo. There is no timeline on when the dredging would be complete.
Other ports up and down the East Coast are also planning for the arrival of super-post-Panamex ships. The Port of Charleston is expected to finish dredging its inner harbor to 52 feet and its outer channel to 54 feet this year. Last year, the Port of VA received a down payment from Congress on its dredging project that could bring its depth to 55 feet by 2024.
Labor costs, efficiency drive terminal automation
Cutting labor costs and improving truck turn times were the main drivers for marine terminal automation on the U.S. West Coast. On the other hand, East Coast operators desired to handle larger vessels. However, responses were mixed on whether those expectations were met or fell short, according to a survey.
METRANS sent questionnaires to 63 operators of fully and semi-automated terminals around the world. Half of them responded, and all six automated terminals in the U.S. responded.
Survey results found the main driver for automation on the East Coast was to enable terminals to handle vessels up to 14,000 TEU capacity. On the West Coast, reducing labor costs and improving truck turn times were the primary drivers for automation.
Areas where results generally met or exceeded the expectations that terminals had when choosing to automate included reduced air emissions, improved truck turn times, and increased land productivity.
The areas where the benefits of automation fell short included reduced labor costs and the ability to efficiently handle megaships.
Pandemic demand overwhelmed ocean capacity, drove rates higher
A two-year long investigation into the impact of the pandemic on container shipping has shown that the market is competitive and record rates are due to demand overwhelming vessel capacity.
Commissioner Rebecca Dye made 12 recommendations for the agency, including rulemaking to provide clarity and coherence on acceptable practices tied to empty returns and earliest return dates. She also recommended that the FMC investigate how container lines, ports, and marine terminals levy charges through tariffs.
Further recommendations include creating an advisory committee of U.S. seaports, marine terminals, and ocean carriers; requiring container lines to employ an FMC compliance officer, and more public outreach on the agency’s competition enforcement.
About O’Neill Logistics
O’Neill Logistics is a leading 3PL with operations in Rancho Cucamonga, CA; Savannah, GA; and Newark/Monroe, NJ. We service many verticals including Garments, Fashion Accessories, Footwear, Furniture, Home Goods, & Electronics. Additionally, we offer omni-channel distribution and all value-added services. Lastly, we focus on retail “drop shipment” fulfillment and item-level fulfillment services with same-day service offerings.
O’Neill Logistics has over 2 million square feet of state-of-the-art facilities. Additionally, we offer dray services to support the warehouses and provide distribution to retailers and wholesalers. Our reliable 3PL platform combines sophisticated technology with robust, flexible processing designs and speed-to-market gateway models.
Lastly, we aim to simplify your supply chain. We deliver exceptional service and can optimize your operational performance. Therefore, we aim to build, protect and foster strong business partnerships.
