Entering its ninth day, the Hong Kong Port strike has begun to have a significant impact on the movement of cargo in and out of the world’s third busiest port. According to Journal of Commerce reporting, “Forwarders are now reporting vessel delays of up to six days for ships calling at terminals operated by the target of the labor unrest — Hongkong International Terminals (HIT).” Additionally, JOC states that yard productivity and truck turn-around times at HIT have been adversely affected by congestion resulting from the strike: “the dispute is impacting yard operations and causing berth congestion at HIT and HIT-Cosco facilities, with resulting delays of two to four days” A recent New York Times article describes a chaotic situation where one of the world’s most efficient ports has nearly ground to a halt with congestion that “will ripple across the global supply chain, adding to costs as ships are forced to reroute or to skip subsequent ports of call.” According to some estimates the strike is costing HIT daily losses of at least $5 million.
Hong Kong’s The Standard reports that talks scheduled by the Hong Kong Labor Department failed to materialize any progress. HIT did not attend these talks with the striking subcontractors. Additionally, concerns about the upcoming peaks season are being raised. If the strike continues and the Port of Hong Kong is brought to a virtual standstill the impact could be devastating for the economies of Hong Kong and South China as well as the global economy. Finally, the Hong Kong High Court has ruled in favor of the injunction barring striking workers from entering container terminals that Hutchinson, HIT’s parent company, requested on Monday.
The following carriers in particular make use of the affected terminals: CSCL, HMM, APL, HAPAG-LLOYD, WAN HAI, ZIM, MOL, & CMA. The delay and congestion problems caused by the virtual shut-down of so many terminals throughout the Hong Kong Port system is likely to impact other South China ports as vessels are diverted.
At present, given the failure to get all parties to the bargaining table: “the deadlock between the strikers and the contractors could last for some time, given the strikers are adamant to fight for the pay rise and the contractors are not reacting to their request” (JOC). CMA CGM as well as the MOL group issued detailed adivories informing shippers of schedule and routing changes as they seek to work out the difficulties and delays the shutdown of HIT has caused. |
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JOC | Mike King, Special Correspondent | Apr 04, 2013 10:26AM EDT
Strikes and demonstrations by dockworkers at the Port of Hong Kong have now entered their second week and vessel queues are continuing to lengthen, forcing the diversion of large volumes of container traffic away from the world’s third-busiest container port. |
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Source: Air Cargo World (Adina Solomon)
26 March 2013
The construction of the Airbus A320 family assembly line in Mobile, Ala., will begin April 8 with a groundbreaking ceremony.
Aircraft assembly at the plant will begin in 2015 with the first aircraft delivery in 2016.
Executives from aerospace company EADS and Airbus – including Airbus CEO Fabrice Bregier – will attend the event. Government officials will also be present.
Airbus announced in July 2012 that it would establish a major manufacturing facility in Mobile. It will be the company’s first U.S.-based production facility and will eventually create 1,000 jobs. |
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JOC Staff | Mar 28, 2013 4:46PM EDT
Negotiations for a new multiyear contract between ABF Freight System and the Teamsters union will continue under a 30-day contract extension that pushes the talks into late April.
The nation's sixth-largest less-than-truckload carrier will resume talks with the Teamsters April 8, the company said in a statement March 28. The current contract would have expired March 31.
"ABF reassures all customers that it remains business as usual while talks continue," the Fort Smith, Ark.-based company said in a statement.
The negotiations got off to a contentious start last December, with ABF pushing the Teamsters for concessions in wages and benefits and for greater operational flexibility.
The Teamsters in turn sought wage increases and blamed management and the recession for the company's difficulties.
The company blames high labor costs and restrictive work rules for difficulty recovering from the recession. ABF lost $19.4 million in 2012, after reporting a $3.6 million profit in 2011.
LTL tonnage per day dropped 4.6 percent at ABF in 2012 compared to 2011, though it rose 0.4 percent year-over-year in the fourth quarter, according to the company.
"These negotiations are difficult and complex," Gordon Sweeton, co-chairman of the union's National ABF Negotiating Committee, said in a statement March 15.
"We understand the company needs some relief. However, we are not willing to let the company destroy the standards we have fought for and established," Sweeton said.
In a March 28 update, the union said "slow progress continues to be made," but "significant issues remain to be discussed."
This story was updated March 29.
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JOC Staff | Mar 29, 2013 11:11AM EDT
The Teamsters union will meet with representatives of YRC Freight April 19 to discuss the trucking giant's plans to restructure its terminal network.
Union and company representatives will meet in Dallas, according to a statement released by Teamsters National Freight Director Tyson Johnson and Assistant National Freight Director Gordon Sweeton.
"At this point, it is appropriate for affected local unions to meet with YRC to discuss the company's proposed change of operations in accordance with normal practice," the union said in the March 28 statement.
YRC Freight, a $3.2 billion company and the third-largest stand-alone less-than-truckload carrier in the U.S., wants to close 29 terminals and three distribution centers.
The plan — which aims to reduce freight handling and damage and to speed shipments significanty — could eliminate 230 jobs and would affect more than 1,200 workers.
Transportation consultant Satish Jindel of SJ Consulting Group estimates the plan could save YRC Freight $25 to $30 million as it struggles to restore and maintain profitability.
YRC Freight restructured its network last year without closing facilities, redirecting freight flow among its 295 terminals. The closures would reduce its network to 266 terminals.
The long-haul LTL company reported its first quarterly operating profits in four years in 2012 — $2.8 million in the third quarter and $21.1 million in the fourth quarter.
YRC Freight lost $37.3 million in 2012, compared with an operating loss of $88.5 million in 2011 and $170.3 million in 2010.
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JOC Staff | Mar 29, 2013 2:36PM EDT
Stevedores from most ports in Chile are on strike, according to Chilean shipping company CSAV.
Stevedores at Angamos Port have suspended labor activities since March 16, and stevedores of the ports of Antofagasta, Iquique, Mejillones, San Antonio, San Vicente, Lirquén and Coronel have joined a general stoppage of activities since March 26.
As a result, port operations are temporarily suspended in all of the aforementioned ports. CSAV said it is monitoring the situation and evaluating “all possible alternatives in order to resolve the restrictions arising from this matter.”
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JOC Staff | Mar 29, 2013 10:20AM EDT
Leo Varadkar, Ireland’s Minister for Transport, Tourism & Sport, has announced plans to “radically overhaul” the nation’s 19 commercial ports and give the government a more hands-on role in the sector to facilitate a competitive and effective market for maritime transport services.
The main features of the new National Ports Policy include specifying the government’s vision and demands for the sector, encouraging private investment in the ports, recognizing the different roles of each port, investing in deepwater capacity after “stringent analysis” and continuing the commercial mandate of the ports to turn a profit and pay a dividend without Exchequer grants. A new performance oversight system and a new approach to capacity planning will also be developed.
“This new ports policy encourages each port, large or small, to develop its full potential to ensure that each one can contribute to further growth in the ports sector,” Varadkar said in a written statement.
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