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).

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 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 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).