News

Monday, 23 February 2015 15:46 |

U.S. WEST COAST PORTS : TENTATIVE AGREEMENT

After more than 9 months of negotiations and with assistance from the Secretary of Labor and the Federal Mediator, the PMA and the ILWU announced on Friday 2/20 a tentative agreement on a new 5-year contract. Now all 29 West Coast ports can resume full operations. However it will take many weeks to clear out the massive backlog of containers and ports congestion. The agreement is subject to ratification by both parties.

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Friday, 13 February 2015 15:22 |

PACIFIC MARITIME ASSOCIATION : VESSELS SUSPENSION between THU 2/12 to MON 2/16

The PMA members are temporarily suspending premium-pay weekend and holiday vessel operations as from Thursday FEB/12 (Lincoln’s Birthday) to Monday FEB/16 (Washington’s Birthday), while yard, gate and rail operations will continue at terminal operators’ discretion.

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Tuesday, 10 February 2015 15:18 |

US WEST COAST : The impact

The 10-day lockout in 2002 was estimated to have cost almost $1 billion a day for the U.S. economy. The National Retail Federation and the National Association of Manufacturers commissioned a study to quantify the U.S. economic consequences of a closure of 30 West Coast ports over various durations of time and to estimate the impact on U.S. employment, output and income. The cost of the West Coast port disruption to the U.S. economy is estimated at $2 billion a day.

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US dockers and employers reach tentative contract agreement

Subject to the final approval from the members of the ILA (International Longshoremen’s Association) a six years agreement (through 2024) have just been reached with USMX (United States Maritime Alliance) for the US East and Gulf coast ports.

Fuel prices and higher transportation costs

The main cost of shipping lines is the bunker. Oil and bunker prices have increased for months and reaching the highest levels since 2014, impacting deeply the carriers. Some emergency bunker surcharges or increases of the bunker adjustment factor (BAF) are going to be implemented and will increase the transportation costs.

That situation may continue because the demand gets stronger with fairly good worldwide forecasts, more oil demand from the emerging & developing countries looking to par with the OECD standards and the difficulties faced by some oil exporting countries like Venezuela or tensions in the Middle-East especially if embargo is decided against Iran.

As a matter of fact, it is likely to consider some higher transportation costs for the second semester.