The Federal Maritime Commission is "evaluating" the use of port congestion-related demurrage fees by carriers and terminal operators, said FMC Chairman Mario Cordero in testimony Feb. 25. Cordero discussed the agency with the House Marine Transportation Subcommittee during a hearing (here). "Many shippers" say such fees are unfair, he said. "With disappointing frequency, the Commission is receiving complaints by shippers about how shippers are repeatedly told that they may not retrieve a container due to on-dock congestion or delays at the gate. Worse yet, some shippers find out that once the container is finally made available, the carrier and marine terminal operator will not release it until the shipper pays demurrage for not picking up the container before free-time expires. " The question of the legality of such charges recently came up in relation to congestion issues at the West Coast ports (see 1411180015).

Despite a tentative agreement between the Pacific Maritime Association and the International Longshore and Warehouse Union, it will take some time before the West Coast ports can get up to full speed. "My understanding is that it’s going to take quite some time for the backlog to clear out,” said Sage Chandler, Consumer Electronics Association vice president-international trade. “I’ve heard companies saying they expect things will be slow for another month.” There’s “just so much backlog that’s going to continue to affect things, but companies certainly are breathing a major sigh of relief” that a contract settlement was finally reached, she said. The agreement must be ratified by the two sides (see 1502230002).

Congestion at the West Coast seaports hurt cargo movement in January at the Port of Long Beach, the port said (here). The month's containerized cargo imports accounted for some 213,667 twenty-foot equivalent units (TEUs), a 23.5 percent decline from January 2014, it said. Exports were down 19.6 percent to 98,462 TEUs and empty containers declined 7.6 percent to 117,361 TEUs, said the port. The decreases were a result of the congestion and related labor contract dispute, the port said. “We have been strongly urging the two parties to come to an agreement on a new contract, so that we can clear the backlog of cargo on the docks and the ships anchored off the coast,” said Port of Long Beach Chief Executive Jon Slangerup. “We are encouraged by recent progress through federal mediation and are hopeful that the contract will be signed soon, so that the Port complex can focus on returning operations to a normal pace.”

Labor Secretary Tom Perez is giving the Pacific Maritime Association and the International Longshore and Warehouse Union until Feb. 20 to reach an agreement on the months-long labor contract impasse at West Coast ports, National Retail Federation trade expert Jonathan Gold said in a statement (here). If the two sides fail to strike a deal, Perez should send contract negotiators to Washington to bring a final resolution on a new contract, said Gold.

The International Longshore and Warehouse Union put the blame for the West Coast labor impasse squarely on its counterpart in the crisis, the Pacific Maritime Association, on Feb. 12, hours after PMA shut down work at the ports for that day, as well as Feb. 14-16. PMA, an association of employer companies at the ports, is sabotaging the talks in order to "gain leverage," said an ILWU statement. The association cut ILWU work for those days in protest over paying premium rates for slowdowns and "diminished productivity" (here).

The Pacific Maritime Association and the International Longshore and Warehouse Union resumed their public relations war on Feb. 9, with the PMA accusing the ILWU of insisting on the right to independently fire contract arbitrators in a long-term deal. An ILWU spokesman didn’t comment on that part of the negotiations, but said there are only a “few remaining issues” in dispute. The two sides are continuing to talk, and the union is committed to striking a new contract deal “as quickly as possible,” said the ILWU spokesman.

The International Longshore and Warehouse Union and Pacific Maritime Association have reached a tentative agreement on chassis maintenance and repair, a major roadblock in West Coast port labor negotiations, according to a Jan. 27 press release from the American Association of Port Authorities (here). Since ocean carriers had stopped providing chassis, the ILWU had “long desired” the jobs associated with chassis maintenance and repair, according to a report from the Long Beach Press-Telegram (here).

The Federal Maritime Commission's top priority for the coming year will be to address congestion issues that are plaguing U.S. ports, said FMC chairman Mario Cordero in a press release (here). "Among the Commission’s statutory goals is the assurance of an efficient ocean transportation system," he said. "The efficient operation of the Nation’s ports is squarely within that mandate and paramount to the Commission’s responsibilities. As we move forward, I look forward to a thorough review of the issues and views that have been provided from various maritime industry stakeholders. The FMC will continue its role in protecting the shipping public and addressing unreasonable or unjust practices by carriers or marine terminal operators."

More than 160 trade groups urged President Barack Obama on Dec. 23 to force federal mediation in the ongoing labor contract impasse between the Pacific Maritime Association and the International Longshore and Warehouse Union. The letter echoes frequent and growing industry calls for the federal government to resolve the deadlock, which affects 29 West Coast ports (see 1412180012). PMA officially asked for the Federal Mediation and Conciliation Service for help (see 1412180012).

The Pacific Maritime Association officially requested federal help in its labor contract negotiations with the International Longshore & Warehouse Union, said the U.S. Federal Mediation and Conciliation Service in a press release (here). The "FMCS has been closely monitoring these negotiations for some time and has stood ready to provide mediation services at a moment’s notice," it said. "In light of PMA’s request, and consistent with the voluntary nature of the mediation process, FMCS mediators will promptly reach out to the parties to determine whether and when mediation assistance would be most valuable." Several industry groups previously requested that the federal government get involved (see 1412180012).