Charleston port gives carriers a rate break

Charleston port gives carriers a rate break The South Carolina State Ports Authority will implement a 5 percent across-the-board rate discount in the Port of Charleston for the first three months of the year.
   The port said it was providing “near-term relief to customers impacted by the current global economic situation.”
   “Our carrier customers are facing some very challenging market conditions,” said Bernard S. Groseclose Jr., president and chief executive officer of the port authority. “We heard from them and we’re responding. This sends a clear signal that we are serious about their business today and in the future.”
   The action comes at a time when container volumes at the port are down 4 percent in the first five months of its fiscal year (July-November), on top of a 10 percent decline the prior fiscal year.
   There is also uncertainty about the relationship between the port, its largest customer Maersk Line, and the International Longshoremen’s Association.
   Maersk, which provides the port with about a quarter of its cargo, reportedly is not meeting minimum volumes commitments under a contract with the port and is paying a shortfall fee.
   According to the Charleston Post & Courier, Maersk has asked the port for relief and the port proposed that Maersk either reduce its footprint at its terminal and turn back some equipment, or the Danish carrier move its operations to a “common-use” area where state employees perform stevedoring work rather than employing ILA members.
   But at a meeting called last week, ILA members rejected a proposal to allow Maersk to switch to the common user portion of the state’s facilities.
   Maersk, Evergreen, the CKYH Alliance (COSCO, “K” Line, Yang Ming and Hanjin), and Atlanticargo hire private stevedores and use ILA members to interchange equipment on and off the terminal, while other carriers use state employees. State employees also operate both the ship-to-shore cranes, transtainers and other yard container stacking equipment such as front loaders in the Charleston terminals for all carriers.