Relations
between members of the International Longshoremen and Warehouse union and
waterfront employees on the U.S. West Coast have heated up over the past couple
of years with protests and other actions in the Pacific Northwest and at ports
in California. The two parties are currently in negotiations for a new contract
that expired this past June. This is causing a serious negative impact on
vessel and terminal operations which includes vessel delays and operational
difficulties at the ports. Congestion at the Los Angeles-Long Beach port
complex has reached crisis levels and is worsening.
Today we started to receive official notices from various steamship lines
(K-Line, Evergreen, CMA-CGM, NYK, Hanjin, Hyundai to name a few) about their
plan to immediately implement a "Port Congestion Surcharge".
We are deeply concerned that the longer this stalemate continues the more cargo
will back up. If the situation is not corrected quickly some carriers may enact
"Force Majeure" and begin dropping off cargo at ports other than
where the cargo has been ordered to be delivered in order to clear their
vessels of cargo. We are doing our best to work to find solutions for all of
our customers and partners in this current difficult situation.
We will report any update when there is any important new information.
