“This agreement brings a close to several months of negotiations and represents a reversal of Maersk Line's decision to depart Charleston announced late last year. The agreement establishes a new contract through Dec. 31, 2014, and places Maersk Line's cost structure in Charleston on a level playing field with other ocean carriers who use the port,” the Danish carrier said.
The port said Maersk had approached it last year seeking to reduce operating costs, and the port had offered to let Maersk either reduce its footprint at its terminal and turn back some equipment, or move its operations to a 'common-use' area where state employees perform stevedoring work rather than employing members of the International Longshoremen’s Association. The port said last year Maersk elected to move to the common user gate operation, but the ILA rejected the change, saying it was being asked to give up jurisdiction under its contract and had not been brought into the negotiations.
Maersk said under the agreement announced Thursday it will now offer services from a smaller, dedicated portion of the Wando Welch Terminal.
Maersk's decision last year to pull services from the port was followed in January by the resignation of Bernard S. Groseclose Jr., the port authority’s president and chief executive officer, who had faced criticism that Charleston was losing ground to East Coast competitors, especially Savannah.
Brokerage Compliance Symposium
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.
F3 Awards Dinner
The 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.
F3: Future of Freight Festival
Industry-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 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