The 15 ocean carriers that are part of the Transpacific Stabilization Agreement "have individually committed to forego imposition of any port congestion surcharges until 2015," said the Federal Maritime Commission in a press release (here). Members of that agreement include Cosco, China Shipping, Maersk, and Evergreen. "During this time, Commission staff will further address with the carriers our concerns for the lawfulness, fairness, and adequacy of notice of implementation," said FMC Chairman Mario Cordero. "The carriers’ commitment to defer the congestion surcharge offers the opportunity to continue this important dialogue and pursue greater transparency as to the timing and the need for future carrier surcharges. The monitoring by Commission staff of port congestion and related surcharges will continue." Carriers have gone back and forth on plans to add congestion surcharges during the labor dispute affecting the West Coast ports (see 1412020011).

Some carriers again temporarily stopped the addition of congestion surcharges during the ongoing labor dispute in the West Coast ports that continues to affect cargo movement. The carriers' announcements mark the second time the surcharges have been dropped after initial plans to put the fees in place (see 1411190026). "Hyundai Merchant Marine has elected not to implement the CGS (U.S. Port Congestion Surcharge) at this time in the Westbound Trade," the company said on Dec. 2 (here). "However, effective December 21, 2014 our CGS for the U.S. West Coast will revert to" $1,000 per 40 foot container. Evergreen Shipping Agency similarly said it would postpone the additional charge (here), as did Hanjin Shipping (here). The surcharges have caused a stir in the industry, which complained to the Federal Maritime Commission, resulting in an agency statement on the legality of such fees (see 1411180015).

The recent congestion surcharges announced by some major carriers may indicate illicit collaboration, said the National Customs Brokers & Forwarders Association of America in a letter to several government officials. NCBFAA Chairman Geoffrey Powell wrote to several government officials, including Federal Maritime Commission Chairman Mario Cordero and Commerce Department Secretary Penny Pritzker, noting that the addition of "identical surcharges" raises the "question of whether this is unlawful collusive behavior." The surcharge announcements also fall outside of Shipping Act requirements and it's likely that "much or all of any congestion is attributable to their own conduct and inefficiencies," Powell said. Several major carriers have recently imposed congestion surcharges (see 1411210018).

The inclusion of "Buy American" provisions within a recent request for proposals issued by Alaska for the replacement of the Prince Rupert Ferry Terminal in British Columbia elicited some concerns from Canada's Minister of International Trade Ed Fast. The state's request for construction bids (here) notes that "all iron and steel products associated with this project are subject to the provisions of the Buy America Provisions." Fast voiced objections to the requirements in a Nov. 25 statement (here). “We are aware of and deeply concerned by the attempt by the U.S. to apply Buy American restrictions to a project at the Port of Prince Rupert, British Columbia," he said. "The extraterritorial application of these protectionist restrictions on trade within Canada by a foreign government is unreasonable. Taxpayers on both sides of the border would benefit from dismantling the trade barriers and inefficiencies created by U.S. protectionist policies such as Buy America." Fast will "explore all options to address this situation," he said. The port is owned by Prince Rupert Port Authority and used by Alaska Marine Highway System ferries.

The International Longshore and Warehouse Union (ILWU) is slowing down operations at the Seattle and Takoma ports in direct violation of a temporary agreement with the Pacific Maritime Association, said the PMA in a Nov. 3 statement (here). The two sides allowed their labor contract to expire on July 1 and have since been negotiating the terms of a new agreement. U.S. importers feared the lapse would disrupt trade, but the ports have largely operated a normal volume over the past several months. However, productivity at some terminals in the ports has decreased 40-60 percent since ILWU initiated the slowdown on Oct. 31, said PMA. The ILWU, in turn, called the PMA statement dishonest, adding that it will only extend conflict over the contract (here). Port operations have slowed recently due to chassis unavailability, as well as truck driver and rail car shortages. The American Apparel and Footwear Association recently lambasted slowdowns at two California ports (see 1411040008).

The Port of Long Beach will allow for three additional working days of "free time for the delivery of international import containers," the port said Oct. 23. The extension is a result of "peak congestion at container terminals" at the port, it said. "This temporary provision will be in effect and applicable for containers discharged from vessels" on Oct. 18 through Oct. 31, it said. "During this period, all of the stakeholders in the ocean transportation industry need to continue do what we can to relieve congestion and bring the terminal service levels back to normal." The port also "strongly urges importers to pick up their containers as quickly as possible and to return chassis in an expedited manner," it said.

In the Oct 21-22 editions of the Official Journal ​of the European Union, the following trade-related notices were posted:

The Port of Long Beach is looking to tackle congestion problems through regular meetings and brainstorming with stakeholders, the port said in a Oct. 7 statement. The Port of Long Beach is also reaching out to the Federal Maritime Commission for help with the congestion, the statement said, while not specifying what type of assistance that may involve. "Nobody benefits from congestion, but everybody wins when cargo crosses our gateway as efficiently and as fast as possible," said Port Chief Operating Officer Noel Hacegaba. "That’s why I am positive we will find productive and efficient ways to move cargo and relieve congestion."

Most terminals of the Port of Los Angeles were set to resume operations on Sept. 24 following a fire, the port said. "Only the Pasha terminal at Berth 177, the location of the fire, will remain closed," it said. The fire started during the night of Sept. 22 and forced the closure of all container terminals on Sept. 23 due to air quality concerns.

West Coast port labor negotiations are again on hiatus July 21-22 as the International Longshore and Warehouse Union (ILWU) holds a previously scheduled meeting in San Francisco, said the ILWU and Pacific Maritime Association in a joint statement on July 18. After that, negotiations will continue until July 28 -- Aug. 1, when the parties will take another break so the ILWU can attend to unrelated contract negotiations in the Northwest, they said. The West Coast labor contract expired on July 1, but the ILWU and PMA have said they will keep ports running at full capacity during negotiations (see 14070222).