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ILWU ContractDavidWhile the ILWU and PMA have a tenuous relationship at times, the reality that they must face is the L.A. and Long Beach port complex (along with the Sea-Tac port complex) consistently losing market share to other ports who have cost advantages, especially for intact containers that move inland via rail to the Chicago, Ohio Valley, and Memphis regions (which account for 53% of the current intact intermodal traffic). NY/NJ and Norfolk/Portsmouth have route cost advantages to Ohio Valley and Chicago of several hundred dollars per import FEU. Savannah has route cost advantages of several hundred dollars per import FEU to Southeast markets, Memphis, Ohio Valley, and Chicago. Houston and Mobile have significant route cost advantages to Dallas and Memphis, but currently lack infrastructure to capitalize on those advantages. All these ports continue to invest in infrastructure to capture more market share. Higher terminal to rail costs, higher land transport costs, and additional government requirements of the West Coast terminals are hampering competition. From the PMA perspective, they will obviously be looking at labor costs which is naturally the most significant operational expense of the business. On the other end, a continued push to increase membership, wages and benefits is typical on the ILWU agenda. Automation will be another contentious issue between the two sides. In 2019, APM terminal was successful in implementing its automation plan for a portion of its yard (Port of L.A. commissioners vote of 3-2) although it received pushback from the ILWU, who perceive automation in any form as a potential “job killer.” The PMA Terminals have a contractual right to automate their operations to meet efficiency, safety, and emission standards although it may not always make economic sense to automate. APM, LBCT and TRAPAC currently use automation in their operations and it has helped reduce turn time of truckers picking up containers. References: PMA-ILWU-RELEASE-FINAL-2-20-15.pdf Obama to Intervene in Dispute at West Coast Ports - The New York Times (nytimes.com) ILWU votes for 3-year contract extension with West Coast ports | Supply Chain Dive 2014-2019_PCLCD_web.pdf (ilwu46.com) PowerPoint Presentation (pmanet.org) APMT Pier 400 Los Angeles breaks container moves world record - Port Technology International Longshore labor: ILWU’s anti-automation plea to California hints at contract flashpoint (joc.com) As L.A. ports automate, ILWU union protests but truckers cheer - Los Angeles Times (latimes.com) Port of Los Angeles Automation: APM Terminal’s automation at LA foreshadows more (joc.com)
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| CBFANC Newsletter - copy of February 2021 - Info Expeditor | ||||
