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Why port business leaders are pushing for early PMA contract negotiations

By ussa-login on Monday, November 7, 2016 - Blog

Strike-related issues are a big problem for ocean carriers, port operators, terminal operators, truckers servicing the ports, and importers and exports in the U.S. Manufacturers, retailers and other local, regional, and national groups dependent on the ports are pushing for contract negotiations to be finalized as the lack of outcome is having a negative effect on all aspects of international ocean shipping.

During past negotiations, West Coast ports nearly came to a complete halt as a result of ILWU and PMA members blaming each other for the port through-put being too slow.

Apart from the ports being slow, there are a wide variety of other reasons why early contract negotiations are being pushed, including:

  • The ocean carriers have had a marked increase in expenses, directly as a result of port strikes/slow-downs, which they are not able to pass on to their users.
  • Many of the affected U.S. ports have suffered damaged reputations due to the long labor disputes.
  • As a result of the ports being slowed, there were a number of ships moored offshore, waiting to dock and discharge their cargo, amassing extensive additional cost for the carriers. U.S. receivers saw missed receipt deadlines, and heavy extra costs for expedited late delivery.
  • Agricultural exporters have been negatively impacted as their shipments have been stranded and rendered unusable/worthless.
  • In today’s global economy, U.S. exports are available from other competing sources in other countries; when buyers are forced to source elsewhere due to strike delays, they do not readily return and the U.S. economy is negatively affected.

Choose to partner with USSA – to make ocean shipping easy 

USSA has over 25 years of experience in getting the best contracts together for their clients. We also make it easy for you to view ocean freight rates online as ocean freight rates are one of the main aspects of transporting goods from one place to another. Our mission is to provide our clients with more than 18 different freight contracts to choose from, thus meeting each shippers needs.

Should you require more information, do not hesitate to contact us and one of our friendly consultants will assist you.

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