With many contentious issues unsettled and a June 30,2014 contract deadline looming between the IWLU and West Coast marine terminal operators represented by the PMA, many experts agree that work stoppages are likely at U.S. West Coast Ports. Should these occur, ocean carriers have all implemented Port Congestion Surcharges—which would apply regardless of the U.S. destination or origin. Congestion surcharges have been announced in the amounts of $800/20’, $1000/40’, $1125/40’HQ, and $1265/45’HQ container. Importers and exporters should expect to pay these fees before release of their cargo.
In addition, if a prolonged labor dispute goes forward, ocean carriers are expected to declare Force Majeure, thereby transferring the financial burden of relocating any containers affected by the dispute onto shippers. Many recall work stoppages in 2002, when vessels piled up outside ports, with many discharging in Mexico, Panama and other foreign locations at great expense to U.S. importers.
Among the disputed issues are IWLU health care costs related to Obamacare “Cadillac Plan” rules, jurisdictional authority for various port services/job retention, pension reform, and port productivity and automation.
