Jul 07

Port of Long Beach, Los Angeles Drayage Truckers Begin Strike

By City News Service

POSTED: 07/07/14, 8:04 AM PDT | UPDATED: 1 MIN AGO

LOS ANGELES – Truck drivers protesting alleged unfair labor practices — the insistence by the companies they work for to treat them like independent contractors and not employees — began indefinite strikes today at the ports of Los Angeles and Long Beach, a union spokesperson said.

A noon news conference was planned by the truck drivers at Wilmington Waterfront Park, according to Barb Maynard of the International Brotherhood of Teamsters Port Division, which is supporting the striking drivers in their efforts to form a union.

 

 

“Early this morning, port truck drivers from three of Los Angeles’ leading drayage firms began widespread, indefinite unfair labor practice strikes at truck yards and marine terminals at the twin ports of Los Angeles and Long beach, through which more than 40 percent of our nation’s imports are moved,” Maynard said in a statement.

“These unfair labor practice strikes are the fourth such strikes in the past eleven months, and are a dramatic escalation from prior actions, which like many other low wage worker strikes over the past year, were 24-28 hours in duration,” Maynard said.

 

 

More information is available at www.justiceforportdrivers.org .

Lee Peterson of the Port of Long Beach said around 7:30 a.m. that picketing had not affected that facility. Philip Sanfield of A Port of Los Angeles said about 8:45 a.m. that there had been no disruptions of cargo operations at that facility.

Jul 02

NEWFLASH: ILWU, PMA say ‘cargo will keep moving’

July 1, 2014

Talks continue between the West Coast dockworkers union and its employer representatives, despite passing the 5 p.m. (PST) contract expiration today. Shippers, meanwhile, are increasingly concerned about the lack of forthcoming details from the PMA and ILWU during the contract negotiations.

The collective bargaining agreement between the International Longshore and Warehouse Union and employers represented by the Pacific Maritime Association expired at 5 p.m. (PST) on Tuesday without reaching agreement on a new contract.    In a joint statement, the ILWU and PMA said “while there will be no contract extension, cargo will keep moving, and normal operations will continue at the ports until an agreement can be reached.”

Jul 01

West Coast Labor Negotiations Update 2014-7-1

30 Jun 2014 – JOC
Contract negotiations between the International Longshore and Warehouse Union and the Pacific Maritime Association continued today, although reaching an agreement by the deadline of 5 p.m. on July 1 does not look likely.
30 Jun 2014 – JOC
With a potential U.S. West Coast labor disruption just days away, truck traffic at the ports of Los Angeles and Long Beach is reportedly slow and congested, making it difficult for some shippers to get containers out of the port complex that handles 40 percent of U.S. trade.
Jun 26

Managing Risk of ILWU Strike – Survey Results

 

From JOC 2016-6-26

A little less than one-third of shippers surveyed by an investment research firm last week have accelerated imports into U.S. West Coast ports and built up additional inventory ahead of potential work stoppages or slowdowns around the June 30 expiration of the International Longshore and Warehouse Union’s contract.

And, despite the inventory build-up, few of the roughly 50 shippers expect weaker freight shipments in the third quarter.

Thirty-one percent of the roughly 50 shippers surveyed by Wolfe Research said they have moved more goods through the ports in case contract negotiations between the ILWU and waterfront employers break down. Those shippers on average have increased their inventory by 7 percent, suggesting freight volumes in the second half rose about 2 percent, Wolfe Research said.

Shipper concern over a work stoppage has helped push import volume at U.S. West Coast ports up 6.5 percent year-to-date, Wolfe Research said. The firm expects U.S. East Coast ports to see similar gains as shippers divert volume away from the U.S. West Coast ports. Shippers’ diversions already appear to have hit west coast Canadian ports, with the ports of Metro Vancouver and Prince Rupert seeing double-digit year-over-year growth in May.

Contact Mark Szakonyi at mszakonyi@joc.com and follow him on Twitter: @szakonyi_joc.

Jun 25

Data Quality Improvement is Priority in Ocean Shipping

Ivan Latanision JOC | Jun 16, 2014 4:39PM EDT

Recently, my company, INTTRA, hosted a two-day summit that brought together CIOs and sea freight and e-commerce thought leaders from the world’s largest ocean carriers and global shippers. Together, we took a hard look at obstacles in our industry’s business processes — and at what it will take to bridge them. Participants expressed a consensus around two overriding challenges: improving cost efficiencies and improving customer experiences.

The first challenge is finding optimal ways to reduce costs to improve profitability. A recent INTTRA survey illustrates why operating costs are an issue. Approximately US$14 billion in inefficiencies were identified in ocean transport business transaction processes (based on internal INTTRA research) — an issue that automation can resolve. Yet ocean transport remains mired in manual processes, and it’s clear that the industry is ripe for change.

The second challenge is the issue of our time: improving customer experiences in a real-time world. Customer expectations have risen, with e-commerce changing industries such as retail, travel, and finance for the better. With online evolution raising the benchmark on superior service, customers now expect the same level of experience in our industry. In fact, customers have a hard time understanding why ocean transport hasn’t kept up with the pace of sharper customer focus.

How can the industry address these two overriding challenges? After speaking with the CIOs participating in our discussion, I’ve identified four strategic priorities that we can take to drive costs down and raise customer experiences through new electronic shipping — or e-shipping — technologies. They are:

Priority 1: Automating Processes for a Digital World.

It’s well-documented that manual processes are inefficient and error-prone, often leading to unnecessary corrections, shipment disruptions and delays. Human error plays a large part in this, but even more damaging is the industry’s lack of an embrace of digital strategies. Large logistics companies like Kuehne + Nagel are upending the status quo, becoming early adopters of e-shipping-enabled processes, including global roll-outs of e-invoicing and dispute resolution tools, which enable a faster, more automated way of conducting business. Expect other firms to follow suit in 2014.

Automation also addresses other business processes, especially those that involve customer “pain points.” One example: With manual processes, a shipper booking a container shipment might wait hours or days before receiving confirmation from a carrier that both equipment and space are available and booked. Compare that to the experience of placing an online order with an airline or retailer, where one receives an immediate confirmation, along with details on what’s been paid, and a tracking number to monitor the status and progress of a shipment.

Automated processes are now a growing point of emphasis for carriers and transportation intermediaries that want to drive down costs, reduce errors, and deliver the experiences their customers increasingly expect. Those who fulfill these automated expectations will be a step ahead of the inevitable shift.

Priority 2: Improving Data Quality in the Shipment Supply Chain

Studies show that fewer than one in 10 logistics professionals have complete visibility into the transport supply chain (according to KPMG Global Manufacturing Outlook–Competitive Advantage: enhancing supply chain networks for efficiency and innovation. 2013, 335 respondents). The most common culprit: lack of quality data. It’s no coincidence that 63 percent of chief supply chain officers at best-in-class companies are targeting supply-chain visibility as a top management priority for improvement this year (Aberdeen report, November 2013: CSCO 2014: Top Three Supply Chain Execution Priorities).

Many data quality issues are driven by bill of lading errors caused by manual data entry or the “re-keying” of shipping instructions into operating systems. Automation will accelerate “straight-through processing” of these documents, which dramatically improves data quality and reduces redundant costs and excessive corrections. As C-suite executives evaluate the costly impact that poor data has on their bottom line, look for the ocean shipping community to invest more heavily in solutions that will improve data quality.

Additionally, using a standardized method for when data is captured and how it is structured makes data more consistent and actionable. To date, there has been little agreement around the critical points in the ocean shipping supply chain—mainly when data should be captured and recorded. Instead, carriers track hundreds of different events and milestones in different ways, using various formats and transmission methods. Has a container arrived when a ship enters port? Or when it is unloaded at the dock? Having a standardized way to track container event data is critical to driving consistency in data delivery — and gets us closer to the real-time transaction processing, tracking and alerts that ground and air carriers already use to their advantage. Increasingly, collaborative industry networks provide the platform for driving standardization, since they can bring together carriers and transportation intermediaries into a single location, where all agree to share operational data and visibility information. With this enhanced level of granularity, customers can gain an early look at the information that matters to them, and intervene in the event of delays or costly problems.

Priority 3: Ensuring Timely Updates

It’s clear we need to banish irritating information delays. Logistics professionals demand access to timely data, including rates, equipment and space availability, as well as immediate booking confirmations and ‘invoice to shipment’ tracking. They’re tired of checking multiple systems or making multiple phone calls to get answers. Instead, they expect critical information to be delivered directly and instantly to their desktop or mobile device through a consolidated interface.

These customer expectations will drive the technology investments CIOs make in 2014 and beyond as ocean carriers begin modeling what is working well in other industries. The online travel site Expedia is a great example of where we’re headed. Through a single web portal, Expedia consolidates and delivers online rates, instant bookings and confirmations; tracks trip details; and collects payments in a timely fashion—areas where the ocean shipping industry has been deficient. As data becomes more visible and standardized, expect carriers and shippers to consolidate, share and act on information in new, Expedia-like ways, using collaborative, cloud-based tools and networks.

Priority 4: The “Consumerization” of Technology

As new employees are hired into the industry, both those from a younger generation and those engaged in new consumer technologies, they bring expectations about how technologies should be employed in the workplace. Most demand the same types of mobile and collaborative capabilities used in their daily lives as consumers — from smartphones, tablets and mobile apps to networks that make information and people accessible from anywhere. With real-time access the norm, their multimedia, multimodal experiences will impact and change business dramatically.

It’s no surprise that those same pressures are making their way into ocean transport. The rapid interaction of social media has changed how global communications, brands and promotions are driven in the digital age. And workplaces that 10 years ago had never considered incorporating consumer-based technologies are now responding to “bring your own device” (BYOD) trends that equip team members to work while on the go. As e-shipping grows, with its emphasis on speed and simplicity, the broader use of mobile devices and apps is the next logical step, enabling industry employees to be more responsive to customers and colleagues.

Moreover, the industry is rapidly moving to adopt cloud-based models that smooth the shipping process as data becomes more complex. Offering the ability to view and track shipment information on a collaborative solution based in the cloud simplifies the process, while lowering the cost of doing business. In fact, according to Aberdeen, when it comes to freight -forwarding best practices, those classified as leaders are four times as likely to use collaborative multiparty cloud-based solutions for supply chain shipment visibility (Aberdeen Group report: Freight Forwarding Best Practices for Emerging Markets). This is a positive development that reduces the cost barriers to implementing the capabilities required for shippers and carriers to gain a competitive edge.

Urgency Accelerates Change

It’s clear that momentum is building and that change is on the way for the ocean transport industry. We’re seeing more CIOs focus on advancing the industry through investments in technology and by introducing exciting strategic roadmaps. Carriers and transportation intermediaries investing in new automated work processes will achieve a faster return on investments through new efficiencies, while shippers are selecting carriers who can deliver the rich flow of timely information relied on to elevate customer experiences.

The time to act is now. Although the rise of e-shipping has been slow, advancements in digital technology and networks have accelerated the benefits driven by a new digitized era. The opportunities for carriers and transportation intermediaries are game-changing, and those who don’t share a sense of urgency to “go digital” risk being left behind. Now is the time to establish a strategy for collaborating in a connected world, and incorporating industry-standard solutions that will benefit customers — and the bottom line.

Ivan Latanision is chief product officer and leads INTTRA’s global product management, software development, engineering, and infrastructure operations organizations. Contact him ativan.latanision@inttra.com.

Jun 25

Webinar: Understanding trends in ocean and air freight rates

 

Drewry
Confused by changing freight rates?
Understand movements in ocean and air freight rates?
Drewry is hosting a free webinar for supply chain professionals to explain recent trends in ocean & air freight rates and provide an outlook for the future.Drewry will be hosting this webinar on Tuesday 1st July at either 0900 UK time or 1630 UK timeto take account of different time zones.To sign up for this free webinar, please click on the time you wish to attend:

Tuesday 1st July – 9am UK time
Tuesday 1st July – 4.30pm UK time

The webinar presentation will examine and explain:

  • Recent ocean & air freight rate trends on Global trades
  • Economic drivers
  • Drewry’s outlook for freight rates

The event will be hosted by Simon Heaney, Senior Manager, and Philip Damas, Director Drewry Supply Chain Advisors. Both executives will be available to take questions following a 20 minute presentation.

This analysis will be provided by reference to information available in Drewry’s Sea & Air Shipper Insight report.

We look forward to your participation with great interest, so don’t forget to register.

Tuesday 1st July – 9am UK time
Tuesday 1st July – 4.30pm UK time

If you have any questions simply email Simon at: simonr@drewry.co.uk

Jun 23

Billions at risk as West Coast port contract nears end

Associated Press

LOS ANGELES –  The West Coast ports that are America’s gateway for hundreds of billions of dollars of trade with Asia and beyond are no stranger to labor unrest and even violence.

Now, the contract that covers nearly 20,000 dockworkers is set to expire, and businesses that trade in everything from apples to iPhones are worried about disruptions just as the crush of cargo for the back-to-school and holiday seasons begins.  Read Full Article Here…

Jun 18

Port Volumes Increasing As Strike Deadline Looms

The major ports in the United States are beginning to report increasing volumes of import cargo in June.

This increase in volumes is a result of U.S. importers increasing their inventories prior to a possible ILWU strike at the U.S. Ports. The labor contract between the ILWU and PMA ends on June 30th, 2014

Even though volumes are increasing, we are not seeing delays or bottlenecks forming at the ports.

Hugh Finerty

 

Jun 17

China sinks P3 Alliance

China sinks P3 Alliance
By  from London

Plans for the P3 alliance of MSC, CMA CGM and Maersk have been abandoned after the Chinese Ministry of Commerce (MOFCOM) blocked the deal under China’s company merger rules.

Preparatory work for the alliance began after it was announced in June last year and operations were scheduled to begin towards the end of the year.

After the European Commissionand US Federal Maritime Commission approved the deal, it was expected that the Chinese would endorse the proposed network, more-so once the Wall Street Journal spoke to two insiders who suggested the deal would go through.

“In Maersk Line we have worked hard to address the Chinese questions and concerns. So of course it is a disappointment. P3 would have provided Maersk Line with a more efficient network and our customers with a better product.” commented Vincent Clerc, cto and cmo at Maersk Line.

Delays in gaining approval from US and EU competition authorities pushed back the alliance’s start date to the end of 2014, at which point P3 would have accounted for 255 vessels on 29 loops across the the Asia-Europe, transpacific and transatlantic trades.

Chinese shippers called on authorities to block the deal in December, as they believed the alliance would have too much power to dictate market terms.

http://www.seatrade-global.com/news/americas/china-sinks-p3-alliance.html