Logistics Suffer as U.S. Port Dispute Continues
Dozens of ships queuing to dock due to ports dispute; Honda slowing North American car production as parts held up. A labor dispute at ports on the U.S. West Coast is disrupting supply chains across the Pacific, forcing some Asian suppliers to resort to costly air freight and pushing up shipping rates as more freighters are caught up in long queues to dock. With ports near gridlock and cargo delays being felt throughout the U.S. economy, President Barack Obama on Saturday dispatched Labor Secretary Tom Perez to California to try to broker an agreement on a new contract between dockworkers and the group representing shippers and terminal operators. Ports along the coast, which between them handle nearly half of all U.S.
Hong Kong Dock Strike: Shipping Industry Hit Hard
Estimates by the Port Development Council show container volumes through the 9 Kwai Tsing container ports fell 5.9 per cent in March. While the month-long dockers strike is costing Hongkong International Terminals a reported HK$5 million a day, the actual cost of the dispute is costing the maritime and logistics industry much more as ships and cargo are diverted to other ports, reports the South China Morning Post. Citing the Hong Kong Liner Shipping Association, the South China Morning Post adds that shipping lines and logistics firms have also been hit with extra costs as ships burn extra fuel while waiting to berth and vessels and cargo are diverted to other ports…
Unusually, Shipping Coalition Demands an ECA
A coalition of shipping companies wants the Pearl River Delta cleaned up and turned into a low emission zone. The call, from the Hong Kong Liner Shipping Association (HKLSA) and the Hong Kong Shipowners’ Association (HKSA) in conjunction with 17 shipping companies came along with a renewed, one-year pledge from the shipping companies to burn only low-sulfur fuels while berthed in Hong Kong, reports the China Daily. The coalition wants low sulfur emissions mandated by laws by January 2014. But in the meantime, the coalition is also recommending that authorities provide incentives, such as a 50 percent cut in port fees for vessels that come into voluntary compliance, prior to the January 2014 deadline. The alliance wants to increase its reach, beyond Hong Kong however.
