Maersk said last week that it planned to end a quarter of its sailings to the port early next year and stop calling Charleston altogether by the end of 2010, but a spokesman said the port was 'hopeful that a solution can be found to keep Maersk in Charleston.'
The port authority said last week that Maersk had approached it several months ago, seeking to reduce its operating costs, and that it proposed that the carrier either reduce its footprint at the terminal and turn back equipment or stop having members of the International Longshoremen's Association employed by Maersk's APM stevedoring affiliate to man the gates used by trucks coming to and leaving the terminal and switch to a 'common user gate facility' that employs non-union state workers at the gates.
Maersk tried to get the union to agree to let it use the common user gate operation, but ILA members in the port unanimously rejected the plan which ILA Local 1422 President Ken Riley said would have required the union to give up jurisdiction under its contract.
'By the time we were brought in, we were brought in with an ultimatum. Either we would agree to what was on the table or they will leave. When it came to us, there was no room for negotiation,' he said.
Riley said he was hopeful that another meeting on the situation would be held by the end of the year and that 'Charleston will try to do something creative to accommodate Maersk. But the ultimate decision remains with them, whether they will accept any type of arrangement other than what was on the table, which simply cannot happen. I'm cautiously optimistic.'
Riley said that if Maersk moves operations 'to any other port in America they will be exposed to more union labor than they are exposed to in Charleston,' where he says the company has the flexibility to hire only as many workers as it needs.
Throughout the terminals in Charleston, state workers operate both ship-to-shore container gantry cranes and yard stacking equipment. But Riley said in nearby Savannah, ILA members operate the gates and south of Savannah and north of Wilmington, North Carolina, ILA members perform nearly all the jobs throughout marine terminals.
'Time is of the essence,' Riley said. Shippers 'are concerned about getting their goods to get where they need to go. If the shipping point is Charleston and they are presently sailing on Maersk and Maersk is saying they are pulling out, then customers begin to look for other options.
'My fear is that if the train gets too far down the track then it is too late to do anything,' he said. ' Chris Dupin
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now