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November 21, 2014  



ILWU Negotiations delayed until

December 2



MSC says it will start congestion surcharge

Nov. 26

  After suspending plans, MSC says it will begin surcharge related to West Coast port congestion next week.

By Chris Dupin |Friday, November 21, 2014

MSC, the second largest container carrier, said it has now decided to start imposing a surcharge related to congestion at West Coast ports on Nov. 26. The company — like many other shipping lines — had originally announced plans Nov. 14 to start applying a congestion surcharge on Monday of this week. It originally planned to apply the charge on "all cargoes discharged or gated in at USWC ports on or after Nov. 17, 2014." But after the Federal Maritime Commission and many shippers raised questions about whether the surcharges could be applied to cargo that was already tendered to carriers or in transit, MSC and other companies suspended their surcharges.


Main ILWU-PMA negotiators not expected to meet until Dec. 2

No rapid conclusion is expected in labor contract talks that have been ongoing for six months.

By Chris Dupin |Friday, November 21, 2014

Shippers should not expect much progress in the contract talks between the International Longshore and Warehouse Union and the Pacific Maritime Association in the next week and a half. Sources tell American Shipper that the so-called “big table” talks between chief negotiators ILWU President Bob McEllrath and PMA President Jim McKenna are not expected to resume until Dec. 2. The negotiating committees have gone home. Craig Merrilees, a spokesman for the ILWU, said that there are still committee talks going on, and he added that throughout the bargaining process, there have been some periods where smaller groups have met. But one management source said he considered the talks going on now to be "inconsequential."


Drayage drivers end strike against Pacific 9 Transportation

Port truck drivers continue their strike against five companies, seeking recognition as employees.

By Chris Dupin |Thursday, November 20, 2014

Port truck drivers seeking recognition as employees said Wednesday they would end a strike against Pacific 9 Transportation, citing "progress in confidential discussions between the Teamsters and the company" in talks facilitated by the office of Los Angelese Mayor Eric Garcetti. "No retaliation for concerted union activity has been reported by Pac 9 drivers thus far," said the group, which is seeking to have independent owner-operators who work as drayage drivers recognized as employees. The Teamster-affiliated group Justice for Port Drivers said drivers from five other companies would remain on strike. Those companies are Pacer Cartage, Harbor Rail Transport, QTS Inc., LACA Express and Win-Win Logistics.


PierPass not backing down from congestion mitigation fee

The terminal group meets with FMC, shipper groups and explains efforts to extend terminal hours.

By Chris Dupin |Wednesday, November 19, 2014


PierPass meets with FMC, shipper groups and explains efforts to extend terminal hours.After meeting with members of the Federal Maritime Commission and several shipper groups last week, PierPass does not plan to lift its traffic mitigation fee on cargo moving through the Port of Los Angeles and Port of Long Beach during the daytime hours, but the group detailed how its terminal members are keeping their truck gates open many more hours in an effort to ease congestion at the two ports. PierPass collects a $66.50 fee from truckers moving full containers of cargo on and off terminals during the day. The fee encourages truckers to pick up and drop off cargo after 6 p.m., when the fee is not charged. The fee is used to fund the operation of terminals at night and on the weekend.


Our regulatory experts are monitoring the situation and keeping a close eye on labor negotiations, which began on May 12, 2014. In the meantime we are checking shipment status on a daily/hourly basis to see where our client’s cargo stands in movement towards its final destination. While we can’t control the situation we can keep you informed.


 The information contained in this newsletter has been compiled from various industry newsletters and other public sources. While we use reasonable efforts to furnish accurate and up-to-date information Page & Jones, Inc. is not liable or responsible for the accuracy or reliability of any information contained herein.


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