ILWU – Potential Labor Disruption FAQ
With the ILWU Labor Contract expiring shortly, many of our clients have voiced concerns about the flow of cargo in the event that there is disruption with U.S. West Coast Ports operations. The following is a short list of the most frequently asked questions.
(Updated 27 Jun 14, 1530 PST)
- Q: If my cargo gets stranded on the USWC will OOCL be flexible on D&D?
A: The degree of flexibility will be determined by the corresponding flexibility of the Port/Terminals impacted.
- Q: Will OOCL be filing a congestion surcharge in case of USWC labor action?
A: Yes OOCL already has filed a congestion surcharge in our tariff. Terms, conditions & duration are included in the filing. A: It is also important to note that the surcharge would be triggered at the time of cargo receipt at origin.
- Q: How will you protect my cargo if I shift to an EC All-Water Route?
A: The same arrangements you are currently making today with OOCL will remain in place, for further specifics contact your OOCL Sales Account Representative.
- Q: Does OOCL expect a shift in shipping patterns?
A: It is anticipated that the market has already pulled forward more sensitive commodity segments in advance of the July contract expiration in anticipation of a potential labor disruption.
A: There will likely be some shifting of cargo to a Vancouver and/or all-water routing, but that alternative will be severely limited due to current high demand utilization levels under natural flow.
- Q: Will OOCL be changing vessel routings/services in anticipation of an ILWU disruption?
A: We don’t foresee any changes to standard loop or routing Performa at this time
A: It is highly unlikely that any vessels would be diverted from the USWC to the USEC due to existing canal & terminal restrictions, or to alternate North American West Coast Ports (Canada/Mexico)
- Q: How will OOCL allocate space in anticipation of a labor disruption and if there is a labor disruption?
A: The same arrangements you are currently making today with OOCL will remain in place, for further specifics please contact your OOCL Sales Account Representative.
- Q: What is the likelihood, severity and duration of labor unrest post-July if a contract cannot be reached?
A: OOCL cannot predict what will transpire between the PMA and ILWU. At this time there is no agreement and no extension is expected. Both sides continue to negotiate in good faith with both sides focusing on a positive mutually beneficial result. Based on all the variables OOCL is not in a position to predict the future outcome of these talks.
- Q: What are the associated Carrier additional costs due to labor unrest/strike situations?
A: Lost voyage fixed costs. Vessel cost for round trip.
Additional bunker for schedule recovery.
Additional pilotage costs to/from anchorage.
Additional costs to shift vessels to open berths in port.
Additional overtime cost in port.
Additional cost for extended gate activity.
Additional chassis cost for congestion demand.
Additional on terminal handling due to congestion.
Additional storage cost incurred at Origin CYs on Export Loads.
Additional equipment costs.
