The talks between the Los Angeles/Long Beach Harbor Employers Association, a group representing 14 steamship lines and terminals, and clerical workers represented by the International Longshore Workers Union Local 63 Office Clerical Unit (OCU) broke down last week. Below is a recap of the situation and information on the status of each terminal.
News / Supply Chain Alerts
Striking workers shut down the largest terminal at the Port of Los Angeles for a second day on Wednesday, ignoring an arbitrator’s order to return to work and raising the possibility of a larger job action that could paralyze the nation’s busiest port complex.
President Obama became the first sitting U.S. president to visit Myanmar, also known as Burma, where he praised the country’s progress in moving toward democracy and called for further reforms. Ahead of President Obama’s visit, the Treasury and State Departments announced that they were waiving the ban on imports from Burma, although the importation of certain jades and rubies is still prohibited.
Hurricane Sandy could knock out power and flood highways in heavily populated areas such as New York City and Washington, D.C., as it comes ashore today, and the Federal Motor Carrier Safety Administration has declared a regional emergency, allowing for exception from some regulations for motor carriers providing emergency materials.
The U.S. FDA Food Safety Modernization Act (“FSMA”) imposes new requirements on companies that supply food, food ingredients, beverages, pet foods or dietary supplements for consumption in the United States.
International Longshoremen’s Association and employer representatives discussed “a number of major issues” in two days of contract negotiations this week, the Federal Mediation and Conciliation Service said.
The Brazilian Board of Foreign Trade (CAMEX) approved temporary Import Duty increases for 100 products, effective the first of October. The increased duty particularly affects the steel, petrochemicals, fine chemicals, pharmaceuticals and capital good sectors. The increases will remain in effect for 12 months, but can be extended until December 31, 2014
The Journal of Commerce Online – News Story
As reported by the Journal of Commerce, the International Longshoremen’s Association and United States Maritime Alliance agreed to a 90-day contract extension, averting a threatened Maine-to-Texas dock strike at the end of this month.
With the possibility of a strike at East and Gulf Coast ports, some carriers have announced a “Port Congestion Charge” that would take effect at the end of September if ports shut down as a result of the labor dispute. The effective date of the surcharge will be triggered by the Gate In Date / Received Date at origin.
Federal Mediation and Conciliation Service (FMCS) Director George H. Cohen announced today that upon the request of the FMCS, the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) have agreed to resume negotiations under FMCS auspices during the week of September 17, 2012.