Problems relating to Trade and Investment on United States

 
26. Others
Issue
Issue details
Requests
Reference
(1) The Risk of Impending Seaport Functional Hiatus due to Strikes - Upon outbreak of waterfront strikes, if doubled with the peak period of the cargo volume, 2-3 weeks delays can result.
- Waterfront strikes in the West Coast, from time to time, could cause delays in import cargo release at times. Normal 10-days to 2-weeks arrival schedule could be stretched to a month.
- Member firm regularly shipping export cargoes to MFS (Member firm's locally incorporated subsidiary) faces procrastinated cargo arrival due to the West Coast ports strikes, necessitating alternative air-freight, which drives up the cost of transportation sky high.
- Due to the U.S. Port strikes occurring at irregular intervals, MFS is forced to confirm the supply chain, necessitating emergency research on delivery/shipment of cargoes.
Transportation costs jump up from having to arrange alternative means of transport by airfreight.
- Large-scale West Coast labour disputes/walkout materially impacted the logistics, forcing costly switch to airfreighting cargoes.
- The U.S. West Coast (Los Angeles port) stevedores' sabotage has prolonged, demanding improved remuneration, working conditions, with increase in cost and time of receiving cargo delivery.
- Delayed import and impact on the volume of export cargoes.
- The area in concern is not Mexico itself direct. The Maquiladora operations in the area mostly rely on California Long Beach for import of parts, etc. Currently, labour-management negotiation faces rough going.
- Reliability is absent on the transport infrastructure in Mexico, arising from the disputes between the Employer Pacific Maritime Association (PMA) and International Longshore Workers Union (ILWU).
- Due to the prolonged U.S. West Coast Labour Disputes (since July approx.), arrival vessel's lead-time has been extended.		 - It is requested that GOU takes step to:
-- i) terminate strikes as soon as possible and
-- ii) secure a sufficient number of containers.
- It is requested that GOU endeavours to avoid port strikes and maintain port functionalities through meticulous and smooth negotiation.
- Negotiation skill improves at the advent of strikes.
- Prior notice upon outbreak of strikes.
- Online real-time check on cargo movement.
- Early return to normal operation is awaited.
- It is requested that GOU settles the dispute by prompt mediation.
- It is requested that GOU intervenes to settle promptly industrial disputes to alleviate harbour congestion.
- It is said the Federal Government will intervene, but it is requested that Japan side will also send their request for early settlement.
- In addition, to complement the shortage in capacity, expanded use of Ensenada Port in Mexico is also requested.
- It is requested that GOU extends its assistance for improvement of congestion.
- It is requested that GOU settles the labour disputes at harbours as soon as possible.
  (Action)
- U.S. West Coast ILWU labour-management negotiation stretched into a 9-months long period from May 2014. Especially in November 2014, ILWU workers decided to go out on strike so that the number of landed containers further dropped by large margin.
- According to Japan maritime center verification, in February 2014 at Los Angeles port, vessel's anchorage-time increased by 146-hours (about 6-days) at Los Angeles port, and 104-hours (about 4.5 days) at Long Beach port, compared to the same month of the preceding year, delay by a large margin in each case.
- On 21 February 2015, ILWU (International Longshore and Warehouse Union) and PMA (Pacific Maritime Association) signed Tentative Collective Agreement (TCA).
- With signing of TCA that ended the labour bargaining, the functionality at ports took off toward normalisation, increasing the number of import containers.

<<BACK