Maersk Line to pull out of Charleston by 2010

Maersk Line to pull out of Charleston by 2010 Maersk Line said its ships will stop calling the Port of Charleston and that it will return its dedicated terminal to the South Carolina State Ports Authority by the time its contract ends Dec. 31, 2010.
   Additionally, Maersk Line told the port that it would move one service, the South Atlantic Express, representing more than 100 calls a year or roughly 25 percent of the Danish carrier’s Charleston port calls, to other nearby ports in early 2009. It said the remainder of its services will be transitioned strategically over the next two years in close coordination with its customers.
   'This port, our region and our state will suffer greatly from Maersk's departure,' said Bernard S. Groseclose, Jr., the president and chief executive officer of the South Carolina State Ports Authority. 'This will mean great losses for our economy at a time when we can least afford it.    However, we will work tirelessly to backfill this area with new business and keep as much of that cargo moving through Charleston as we can.'
   He added, 'Maersk approached the ports authority several months ago, seeking to reduce their operating costs in Charleston in light of the struggling economy and sagging volumes.    Even though we had an enforceable contract through 2010, we made significant concessions and presented two contract options at Maersk's request.'
   The port proposed that Maersk either reduce its footprint at its terminal and turn back some equipment, or that the Danish carrier move its operations to a 'common-use' area where state employees perform stevedoring work rather than employing members of the International Longshoremen’s Association.
   'Maersk elected to move to the common user gate operation, a model enjoyed by more than half of the business currently moving through the port.    This would allow Maersk to remain and grow in the Port of Charleston, bringing thousands of ships and ensuring cost-effective service for South Carolina industry,' Groseclose said. 'This arrangement would have required concessions from the ILA, which the union has unfortunately rejected.'
   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 the ship-to-shore cranes, transtainers and other yard container stacking equipment such as front loaders in the Charleston terminals for all carriers. Members of the ILA locals voted against allowing Maersk to switch to the common user facilities last week.
   The port authority 'offered us a workable solution that involved a move into the common yard, but we needed the consent of local ILA to accomplish the move,' said Dana Magliola, spokesman for Maersk Line. 'The local ILA refused to consent, and so we are forced to move.'
   In a statement issued today, the ILA rebuked Maersk for blaming it for the decision to move, and said the port authority's suggestion that the line move to its common user facilities 'represented an attempt to break down workers conditions by stripping ILA members of jobs with decent wages and benefits.'
   'South Carolina citizens should be outraged that their taxes are being used to support the South Carolina State Ports Authority intent on destroying the local economic engine with low paying jobs which hurts everyone,' the union said. ' Chris Dupin