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East and Gulf Coast Ports ILA Negotiations - Update #4: 12/26/2012

12/27/2012 08:19 am

Dear Valued Customer,

The following is the latest information provided by the “American Shipper”:
 
Wednesday, December 26, 2012
ILA, USMX agree to meet as strike deadline looms
The U.S. Federal Mediation and Conciliation Service (FMCS) director said the International Longshoremen's Association and the group trying to negotiate a new contract with them, the U.S. Maritime Alliance, have agreed to meet before their current pact expires on December 29, 2012.  FMCS Director George Cohen has called a meeting of the ILA and the Maritime Alliance in advance of the December 29th expiration of the contract extension. The parties have agreed to attend.”

We have included the terminal plans of action we have received. 

- FIT (Florida International Terminal):
Plan of action if there is a strike is to certainly facilitate as much as they can, the delivery of the import containers to our customers but at the same time they will be emphatic that no reefers are to remain in their yard past the deadline of Dec. 29th 2012.
Note: monitoring issue, with no ILA personnel available to oversee the proper functioning of containers they cannot and will not assume the responsibility of perishable cargoes being spoiled, losing market value or simply deteriorating due to its limited shelf life. Secondly, their inability to enter the terminal yard will not permit them to ensure their electricity generating equipment will continue operating properly while the strike is in effect. That, will represent a high risks for claims that FIT is not willing nor are in a position to responsibly accept.

- The Port of Virginia:
Is prepared should a work stoppage occur.  The Virginia Port Authority (VPA) and its private terminal operating company, Virginia International Terminals Inc. (VIT), will do all that is possible to expedite the flow in and out of our marine terminals prior to this labor action.

- POMTOC (Port of Miami):
In the event of a work stoppage, ILA work jurisdiction will be respected. What this means is that NO VESSEL OR GATE ACTIVITY will take place for the duration of the work stoppage.

- Port Everglades:
Has plans in place to ensure the safety and security of the Port and the continuation of normal operations at facilities not affected by any potential labor actions on December 30th.
- Port of West Palm Beach:
Their terminals will not be affected by the union. They hire trucker to move their cargo and do not anticipate any issues.

- Maher Terminal:
They urge that all import cargo be removed from their facility by close of business Friday, December 28, 2012. Any cargo remaining on terminal after a strike commences will not be available until after a work stoppage ends despite the commodity. Taking delivery prior to closing of business on December 30th will prevent exposure to unavailability and added expense. The terminal hours for December 26 through December 28, 2012 will be as follows:

Main Terminal/Chassis Depot
Delivery of Imports: 6am – 10pm
Receipt of Exports: 6am – 10pm
Reefer Processing: 6am – 9pm
Receipt of Empties: 6am – 4pm

Off Terminal Empty Depot/Auxiliary Depot
Receive Empties: 6am – 4pm
Deliver Empties: 6am – 4pm
- PNCT (Port Newark Container Terminal):
Has developed a detailed contingency plan to ensure that they take the appropriate steps in the event of a work stoppage.
Vessels:
1) No vessel activity will be performed during any work stoppage. Once the work stoppage has ended, PNCT will work with the carriers to schedule the resumption of vessel operations. 2) Gates:
There will be no gate activity during any work stoppage. PNCT began extended gate hours on Monday Dec. 17 and will continue to operate extended hours through Dec. 28th to allow as much cargo as possible to be delivered. PNCT will operate a Saturday gate on Dec. 29 from 0800 – 1500. They will continue to meet with CBP to ensure they have the staffing to support their extended gate operations.
3) Demurrage / Storage: 
4) Section 8 C. of the NYTC Tariff will apply for all demurrage during the work stoppage. They urge all customers to make every effort to pickup any Reefer import cargo that is available, prior to the start of any work stoppage.
PNCT will make every effort to protect any reefer cargo on terminal during the work stoppage; however they strongly suggest that you consider alternatives with regard to delivering export reefer cargo to PNCT during this period.

- Horizon Lines:
If a work stoppage does occur, they may not be able to transport cargo already accepted & agreed to be transported during the work stoppage. Noting respect for the process of collective bargaining, they would like to encourage you to take steps to mitigate the risks related to a work stoppage by:
1) Taking proper precautions with all highly perishable cargo products, noting delays of several days to more than a week are possible.
2) Ensuring all hazardous waste and hazardous materials shipments are promptly removed from ocean terminals to prevent safety risks or regulatory violations.
3) Ensuring all cargo discharged from vessels prior to December 29th is promptly removed from ocean terminals to ensure access to already-shipped products.

Customized Brokers will continue to monitor the situation and compile terminal and carrier contingency plans to keep you informed. 

If you have any questions please contact us at 305-471-8989.  
 
Thank you for your continued support,

Customized Brokers