Freight News: Week of December 13th, 2023

East Coast Dockworker Contract Talks

The International Longshoremen’s Association (ILA) union are hoping “to achieve a landmark agreement” when their current contract expires next year on September 30th, 2024. Will labor disruption take place if this agreement is not met?

ILA Union President Harold Daggett sent a strong message on November 4th, saying his members should prepare for the possibility of a strike in October 2024.

It remains to be seen if labor disruption will occur if this contract does not come together when the current contract expires. It’s a bit early to really predict what will occur or not occur, but it’s certainly possible. It’s also possible that this will be resolved before the expiration, and no labor disruption will occur.

As a reminder – U.S. West Coast dockworker contract negotiations went on for over a year before a tentative agreement was reached, and then ultimately was ratified a couple months later. Some labor disruption did take place before the agreement was reached.

We also discussed this extensively in last week’s insights. Want to read it?
Email us at support@interlogusa.com and we’ll send you a copy!

 

FMC Small Claims Officer Dismisses An Over Street Turnover Charge Against Ocean Carrier

The case involved TCW, a motor carrier, and Hapag-Lloyd, an ocean carrier. TCW issued a complaint asking if it’s fair for ocean carriers to levy street turn charges in the first place.

As the JOC defines, a street turn is when an empty import box remains on the street and is sent to an exporter in need of equipment.

As reports state, TCW claimed the fee is “unjust under U.S. shipping law in part because it shows preference when only applied to so-called merchant haulage moves, not carrier haulage, and has significant impacts for higher-volume exports.”

TCW was asking for reimbursement for the $30 fee that was issued from the ocean carrier, and a cease-and-desist order to prevent Hapag-Lloyd from issuing further street turn charges.

The FMC’s small claims officer’s decided that, TCW did make a solid case that imposing a street turn fee creates inadequacies and double gate transactions, TCW fell short of demonstrating the charge violated any U.S. shipping laws.

The FMC commissioners have 30 days to review the small claims officer’s decision.

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