Good news from the West Coast this morning! Yesterday, the US West Coast waterfront employers (PMA) ratified a five-year contract with the International Longshore and Warehouse Union. The contract is set to run through July 1, 2014 to June 30, 2019, the PMA announced Wednesday. The ILWU will vote Friday to determine whether or not the contract is officially approved.
Recently, we received word that a strike has been scheduled by the Chilean Customs employees for next Wednesday, May 20th.
The strike is a protest by Customs workers, as they have rejected the Chilean government proposal to strengthen the national Customs service in order to reduce tax evasion and avoidance of foreign trade.
We will be sure to monitor the situation closely and provide updates as we receive them.
TODAY: Senate voted 97-1 to Extend GSP/AGOA/Haiti Preferences, Customs Auth Bill, TPA Legislation
Ray Bucheger
Update on TPA Vote:
The Senate voted Yes today on a cloture motion for a combined TPA/Trade Adjustment Assistance (TAA) bill. A cloture vote is a procedural vote that is required to avoid a filibuster. The vote means the Senate will proceed to debate on the TPA/TAA bill with a final vote likely happening next week
Update on Customs Bill:
Moments ago the Senate passed the Customs bill by a vote of 78-20.
The West Coast ports are expected to return to “normal” by the end of May, but it may not be the “normal” that it was before the contract negotiations began. With bigger ships and more of them, the ports will have to work harder than ever to avoid congestion and keep cargo moving without delays. Truck turn times at some terminals have improved, lasting between 70 and 90 minutes. However, others still average above 100 minutes.
While there is still Teamster action on the US West Coast, congestion in the East Coast ports continues to plague importers and exporters. The lines to get into the NJ ports were so long last week that a New Jersey Turnpike exit was sporadically closed to prevent further back up on the highway. With more services coming into the East Coast, and larger ships coming in from Asia, the East Coast ports may continue to suffer congestion, especially with some importers continuing to divert their cargo.
According to the Journal of Commerce, the trend of diverting cargo is likely to continue.
