It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Tuesday, August 13, 2024
Allision as Bulker Leaving French Anchorage Dents Product Tanker
Tanker Iver Blessing was hit while at anchor off France (PREMAR-Atlantique)
French authorities are detaining two vessels and investigating the circumstances of what amounted to a “fender bender” that left a tanker dented and a bulker holed above the waterline. Both ships remained buoyant with only minor pollution and five minor injuries that did not require hospitalization.
The incident took place according to the French authorities in the Loire-Atlantique estuary leading into the port of Saint-Nazaire. Approximately seven ships were in the anchorage which is used for ships waiting to enter the port or preparing to depart.
The Liberia-registered bulker Olga (18,319 dwt) had raised anchor and was moving out of the anchorage. Around 9:30 p.m. local time on Friday, August 9, the bulker hit the bitumen tanker Iver Blessing (6,188 dwt) which was also in the anchorage. The tanker is registered in Gibraltar and operates from Vroom, while the bulker operates for Germany’s Bluships and its AIS shows a destination of Arkhangelsk, Russia.
The bulker was holed above the waterline on its bow where it clipped the stern of the tanker. The Iver Blessing shows dents in the starboard stern quarter. The tanker reported that five of its crewmembers had suffered minor injuries when the vessel was hit.
A small hole in the bow of the Olga after she hit the tanker while leaving the anchorage (PREMAR Atlantique)
French authorities are reporting that overall the weather was calm with wind force 3 and slight seas. However, there were some reports of fog.
The pollution was caused when an oil drum was observed falling into the water when the contact was made. French authorities were checking but the reports said it only contained mineral oil which would not cause pollution. Neither vessel reported any water ingress.
The French police responded to the incident. The Prefet Maritime De L’Atlantique reports that both vessels were told to remain in the anchorage while the investigation is ongoing.
Offshore Operator Confirms PSV Incident Killed Two and Inured One
Two were killed and one burnt 10 days ago in an accident aboard the PSV (Icon Offshore Berhad)
More than a week and a half after an accident occurred on one of its offshore vessels, operator Icon Offshore Berhad, issued a statement confirming the accident. The local media had reported the incident which took place on August 2 and was critical of the company for not issuing a statement.
According to the police chief, two individuals, the assistant engineer and an oiler working aboard the platform supply vessel Icon Amara were killed. A second oiler was reportedly burnt over 30 percent of his body and was in a local hospital being treated.
Built in 2011, the 3,500 dwt vessel is one of two PSVs operated by the company servicing the Sarawak oil and gas fields. The vessel can accommodate up to 60 personnel.
According to the reports, the vessel was near the Sapar Alpha platform located near Bintulu when there was an explosion at 10:30 p.m. local time on August 2. The local authorities told the media that the vessel was rocked by an explosion that was believed to have occurred in the engine room. The reports said it was so strong it blew the door to the engine room off its hinges. Crewmembers rushing to the scene said the room was filled with smoke and they found the three individuals unconscious on the deck.
The crewmembers were taken to the jetty and then to a hospital. The Health Department reported the two had died of their injuries.
Icon Offshore Berhad says the delay in reporting the incident was while it was working with its client and the local authorities. They expressed condolences to the families and said they were providing support.
The company said it was cooperating with an investigation without providing additional details on the incident. They said they expect the vessel will be restored to active service following the investigation.
Anglo-Eastern and Windcat, CMB.TECH’s offshore personnel transfer company, are expanding their partnership to manage Windcat’s pioneering fleet of dual-fuel hydrogen-powered Commissioning Service Operation Vessels. The partnership comes as Anglo-Eastern pursues a strategy to expand its technical consulting services and fleet management capabilities in the offshore sector.
The agreement for the technical and crewing management of the CSOVs currently under construction at Damen Shipyards expands on the cooperation between the two companies. Windcat retained Anglo-Eastern Technical Services, the technical consulting arm, to oversee the construction of the six CSOVs. The vessels will be built at Damen’s Ha Long Shipyard, Vietnam, and will be delivered to Windcat Offshore, a new business unit within Windcat, which will focus on offshore energy commissioning and services. Initially, two vessels were ordered with options for further vessels.
“Anglo-Eastern is grateful for the trust placed in us by Windcat to be a part of this innovative project developing the next generation of hydrogen-powered offshore vessels," said, Bjørn Højgaard, CEO of Anglo-Eastern. "By combining our deep industry knowledge and shared vision for a greener future, we are confident this investment in clean energy technology will pave the way for more environmentally responsible maritime solutions.”
In line with CMB.TECH's commitment to decarbonizing the shipping industry, the vessels will be equipped with dual-fuel hydrogen engines, enabling lower emissions. CMB.TECH led by the Saverys family has committed to be at the forefront demonstrating the path forward to decarbonize the industry. Anglo-Eastern highlights its shared vision to advance the maritime industry towards a sustainable future.
The first Windcat CSOV will be delivered into operations in 2025. The company worked closely with Damen to develop the design of the unique vessels. They will be equipped to remain in offshore wind farms for up to 30 days, providing maintenance materials and accommodations for up to 90 technicians. The vessels will be 285 feet (87 meters) long and have a 65-foot (20-meter) beam.
The vessels will be outfitted with four azimuth thrusters and a motion-compensated crane. Among the features for the personnel living aboard will be connectivity with STARLINK-supported network systems.
“For us at Windcat, partnering with Anglo-Eastern represents a step forward in our mission to set the standard in the offshore industry,” said Willem Van Der Wel, Windcat’s Managing Director. “With Anglo-Eastern's extensive global reach and their rich experience in ship management, we can further broaden our horizons and offer the same unparalleled service and innovation that our customers know, to this new vessel type, worldwide.”
The new CSOVs will use the same dual-fuel hydrogen technology that is already in place on board the Hydrocat, the world’s first hydrogen-powered CTV (Crew Transfer Vessel). Windcat and CMB.TECH launched the vessel as a pioneer in May 2022. The company announced plans to also introduce additional hydrogen-powered vessels as well as its expansion into CSOVs.
Anglo-Eastern and its strategy is the subject of the cover story of the July/August 2024 issue of The Maritime Executive. Click here to read more about the company.
Taking Over From the Inside: China’s Growing Reach Into Local Waters
On March 14, 2016, Argentina’s coast guard detected a Chinese vessel fishing illegally in national waters. When the ship attempted to ram the coast-guard cutter, the Argentinians opened fire on the vessel, which soon sank.
The Lu Yan Yuan Yu 10 was one of eleven Chinese squid vessels that the Argentine navy has chased for suspected illegal fishing since 2010, according to the government. But one year after the incident, Argentina’s Fishing Council announced that it would grant fishing licenses to two vessels owned by the same Chinese operator that owned the ship the Argentine navy had chased the previous year. These ships would sail under the Argentine flag through a local front company.
The decision seemed to violate Argentine regulations that not only forbid foreign-owned ships from flying Argentina’s flag or fishing in its waters but also prohibit granting licenses to operators with records of illegal fishing. The move may have been a contradiction, but it is an increasingly common one around the world.
Over the past three decades, China has gained supremacy over global fishing by dominating the high seas with more than 6,000 distant-water ships. When it came to targeting other countries’ fishing grounds, Chinese fishing ships typically sat “on the outside,” in international waters along sea borders, running incursions across the line into domestic waters. In recent years, from South America to Africa to the far Pacific, China has increasingly taken a “softer” approach, gaining control from the inside through legal means by paying to flag in their ships so they can fish in domestic waters without the risk of political clashes, bad press, or sunken vessels.
This method typically involves going around prohibitions on foreign shipowners by partnering with local residents and giving them majority ownership stakes. Through these partnerships, Chinese companies can register their ships under the flag of another country, gaining permission to fish in that nation’s territorial waters. Sometimes Chinese companies sell or lease their ships to locals but retain control over decisions and profits. In other places, these companies pay fees to gain fishing rights through “access agreements.”
Chinese companies now control nearly 250 flagged-in vessels in the waters of countries including Micronesia, Kenya, Ghana, Senegal, Morocco, and even Iran. Many of these companies have been tied to a variety of fishing crimes. Trade records show that some of the seafood caught on these vessels is exported to countries including the United States, Canada, Italy, and Spain.
Most countries require ships to be owned locally to keep profits within the country and make it easier to enforce fishing regulations. Flagging in undermines those aims. And aside from the sovereignty and financial concerns, food security and local livelihoods are also undermined by the export of this vital source of affordable protein, often to Western consumers.
In the Pacific Ocean, Chinese ships comb the waters of Fiji, the Solomon Islands, and Micronesia, according to a 2022 report by the U.S. Congressional Research Service. “Chinese fleets are active in waters far from China’s shores,” the report warned, “and the growth in their harvests threatens to worsen the already dire depletion in global fisheries.”
The tactic of “flagging in” is not unique to the Chinese fleet. American and Icelandic fishing companies have also engaged in the practice. But as China has increased its control over global fishing, Western nations have jumped at the opportunity to focus attention on its misdeeds. Even frequent culprits can also be easy scapegoats. When criticized in the media, China pushes back, not without reason, by dismissing their criticism as politically motivated and by accusing its detractors of hypocrisy.
Still, China has a well-documented reputation for violating international fishing laws and standards, intruding on the maritime territory of other countries and abusing its fishing workers. In the past six years, more than 50 ships flagged to a dozen different countries but controlled by Chinese companies have engaged in crimes such as illegal fishing and unauthorized transshipments, according to an investigation by the Outlaw Ocean Project.
China’s sheer size, ubiquity and history of misbehavior is raising concerns. In Africa, Chinese companies operate flagged-in ships in the national waters of at least nine countries. In the Pacific, an inspection in 2024 by local police and the U.S. Coast Guard found that six Chinese flagged-in ships in the waters of Vanuatu had violated regulations requiring them to record their catch in logbooks.
China’s control over local resources is not constrained to domestic waters. In Argentina, China has provided billions of dollars in currency swaps, providing an economic lifeline amid domestic inflation and hesitancy from other lenders. China has also made or promised billion-dollar investments in Argentina’s railway system, hydroelectric dams, lithium mines, and solar and wind power plants.
This money has bought Beijing the type of influence that intervened in the fate of the crew from the Lu Yan Yuan Yu 10. When the ship sank, most of the crew were scooped up by another Chinese fishing ship and returned to China, but four of them, including the captain, were brought to shore, put under house arrest and charged with a range of crimes by a local judge who said the officials had endangered their own crew and the coast guard officers who chased them. China’s foreign ministry soon pushed back against the arrest.
Three days later, Argentina’s foreign minister told reporters that the charges had “provoked a reaction of great concern from the Chinese government.” She explained that she had reassured China that Argentina would follow local and international laws. Several weeks later, the Argentine judiciary also fell in line, releasing the crew without penalty.
The following month, Argentina’s foreign minister met with China’s foreign minister, Wang Yi, in Beijing. After their meeting, Yi hailed their countries’ “voyage of overall cooperation” and promised additional investment to Argentina.
This influence on land and at sea is stoking nationalist worry among locals. Pablo Isasa, a captain of an Argentinian hake trawler, said: “We have the enemy inside and out.”
This story was produced by The Outlaw Ocean Project with reporting contributed by Maya Martin, Jake Conley, Joe Galvin, Susan Ryan, Austin Brush and Teresa Tomassoni. Bellingcat also contributed reporting. More about the investigation can be found on The Outlaw Ocean Project website.
The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.
Houthis Again Stage Multiple Attacks on Greek-Owned Delta Tanker
The EU operation reports as of July responding to over 250 requests from merchant ships (EUNAVFOR Aspides file photo)
The Houthis for the second time in less than a week appear to have pursued a crude oil tanker operated by Delta Tankers of Greece targeting (but missing) the vessel several times. The militants have yet to make a statement about these attacks but speculation by security consultants is that the group targeted the company because of activity with Israel.
Today’s attacks began around midnight local time and appear to have pursued the same vessel for over four hours with three separate attacks and one approach. The UK Maritime Trade Operations which track the reports from vessels issued three reports without identifying the vessel, but Reuters is quoting the Joint Maritime Information Center identifying the vessel as the Delta Atlantica.
The Delta Atlantica (161,762 dwt) is a Liberian-flagged crude oil tanker that appears to be laden after departing Iraq on August 4. The vessel’s AIS shows a destination of Greece. Last Friday, August 9, UKMTO received reports of four attacks on the Delta Blue (158,322 dwt) another vessel operated by Delta Tankers. The Delta Blue yesterday successfully transited the Suez Canal without incident or damage from any of the attacks.
Today began with the report of an explosion in the distance while the Delta Atlantica was approximately 63 nautical miles southwest of Hodeidah. The master later reported an approach by a small boat that was acting “suspiciously” and flashed lights toward the tanker. About an hour and a half later the vessel reported a second explosion in close proximity.
The fourth report came about 45 minutes later with the tanker reporting an attack by an uncrewed surface vessel. The drone was reported “successfully disabled,” without details. Last week, security guards were able to detonate one of the bomb boats before it was close enough to the tanker to cause damage.
The attacks took place over a distance of approximately 35 nautical miles based on the reports. UKMTO numbers it the 107th incident in 2024. The Houthis claim over 150 attacks since the start campaign in late 2023 while Western analysts refer to more than 70 vessels being attacked. In July, EUNAVFOR Aspides reported that it has responded to over 250 requests from merchant vessels.
Reuters is also quoting the JMIC citing a second crude oil tanker targeted today. The vessel is identified as On Phoenix (114,623 dwt) registered in Panama and managed by Anglo Eastern. The vessel’s AIS shows it departed Kuwait bound for Amsterdam. The only details on this attack were reports of an explosion while the tanker was 97 nautical miles northwest of Hodeidah.
In this phase, the Houthis seem to be attacking fewer vessels. While in the past they sometimes fired on the same ship more than once, they now appear to be pursuing the vessels over greater distances and using multiple means of attack.
Attention Walmart Shoppers, B2B Ocean Shipping is Now Available
Walmart is offering B2B ocean shipping and logistics to its business partners (Walmart fulfilment center)
Retailing giant Walmart is offering a new service, container shipping. It will not be found in the aisles which feature everything from housewares to clothing and groceries, but it follows a trend of other large retailers leveraging their shipping and logistics expertise and contract freight rates to partners.
“About two weeks ago, we released a number of key improvements to the Walmart Cross Border (WCB) B2B ocean shipping solution,” announced Scott Humanek, Logi-Tech Product & Tech Executive for Walmart in a posting on LinkedIn. “This allows Walmart Marketplace sellers to ship to the U.S. WalmartFulfillmentServices (WFS) network, starting with China origins.”
Walmart operates more than 10,500 stores and club stores in 19 countries and eCommerce websites that include places for partners to sell goods directly to consumers. Walmart offers fulfillment for its partners, and now they can also take advantage of the company’s shipping and logistics operations.
The shipping option Humanek reports became discoverable and generally available to its WFS network as part of the recent upgrades. Promoting the service online, Walmart writes it offers partners the opportunity to “take advantage of Walmart’s cost-effective negotiated rates to grow your assortment and sales potential.”
Walmart quietly registered with the Federal Maritime Commission nearly two years ago and has a subsidiary company registered as a non-vessel operating common carrier and freight forwarder. The online presence explains the service provides port-to-door full-container-load ocean freight service moving partners' goods from China to the U.S. and taking the products directly to Walmart’s fulfillment network.
“Our pilot exceeded our expectations in terms of feedback and volumes, and we are excited to let the world know that WCB is ready to help all WFS eCommerce sellers grow,” writes Humanek.
Currently, the service is only available for partners which manufacture their goods in China and can deliver filled containers to designated ports. Walmart offers the service from Yantian, Shanghai, and Ningbo. Once the container is handed over in China, they are loaded on containerships under Walmart’s contract rates. When the box reaches the United States, Walmart’s logistics operations arrange the transport directly to its fulfillment centers. Walmart points to the added advantage that items can more quickly become available to customers.
Other major shippers have also looked to expand and leverage their contracts and expertise. The approach grew in popularity during the surge in shipping volumes starting in 2020 during the pandemic when many smaller companies struggled to get space from the carriers even when they had contracts.
Some large retailers turned to chartering vessels to move their boxes including Walmart which confirmed the move to investors in 2021. Others ranged from Amazon to Cosco and HomeDepot while some such as FedEx offered extra space to customers.
German retailing giant Lidl took it one step further launching a niche shipping line called Tailwind. The operation started in July 2022, and originally the Hamburg-based shipping company planned to exclusively move non-food sector cargoes for Lidl from Asia to Europe. Tailwind however expanded to offer capacity to other customers and reports it has a growing number of third-party customers in addition to continuing to service its parent company.
TT Club: To Fight Theft and Trafficking, Check Container Seals
In order to fight the multi-billion-dollar global problem of cargo theft, freight insurer TT Club wants shippers to pay more attention to the security seals on their containers. Though seals are a simple system, they are key to ensuring security for global shipping, keeping cargo in and illicit drugs out - but many supply chain players are unaware of their value, or are lax in implementing checks.
There are many kinds of seals, like plastic seals, bolt seals (by far the most common type) and new digital seals. Criminals have a variety of strategies to breach a seal covertly, access a container and re-seal the door to disguise a theft mid-transit. Thieves can recruit an insider who only partially secures a bolt seal at the point of loading, allowing the "secure" container to be accessed later and then re-closed. An affixed bolt seal can be cut open, taken apart and reassembled with glue, with virtually no difference in appearance. Plastic seals can be replicated with 3D printing, creating a convincing duplicate.
"In cases where a seal has been unsealed and resealed, cargo may appear to be secure even when it is not. This enables cargo theft or the introduction of clandestine migrants or illicit goods without raising suspicion," warned TT.
If staff at the receiving warehouse cut off and throw away the seal without checking the seal number against the manifest, signs of tampering may be lost. At that point, it is harder to figure out where the theft occurred in the journey and who might be responsible. It's good practice for the receiving warehouse to check the seal number and keep the used seal in case there is a cargo claim later on.
"Whatever seal type is employed, their efficacy hinges on whether the information from the seal is accurately checked. A security culture must pervade operations at both loading and unloading points, as well as other key handling locations," says TT’s Logistics Risk Manager, Josh Finch.
TT Club also noted the trade-off between single-use seals and the global push to reduce the environmental impact of shipping. The seals may be perceived as plastic waste, but they have a role to play. "We cannot ignore the societal implications of allowing cargo theft to thrive in the industry," said Finch. "We see great potential in digital seals that increasingly appear on the market."
Ukrainian Cruise Passenger Nabbed for Tax Evasion on Arrival in Germany
Last weekend, a Ukrainian man was arrested aboard the cruise ship MSC Euribia in Kiel for an outstanding warrant for tax evasion. If he had stayed outside of Germany, he would have gone free, according to the local authorities - but as it stands, he will have to serve more than three years in prison.
MSC Euribia operates a week-long round trip route between Kiel, Copenhagen and Norway. When the ship returned to port in Kiel, the authorities checked the passenger manifest and found a wanted name: a 53-year-old Ukrainian man with an active warrant. The man had previously been deported, and he faced a remaining prison sentence of more than 1,100 days if he ever returned - a sentence he will now have to serve.
"Why he traveled back to Germany despite the circumstances will probably remain his secret, especially since the arrest warrant would no longer have been valid in a year," a spokesperson for the Kiel police force told Hamburger Abendblatt.
It was not the first time that a wanted man got picked up because of the Euribia's passenger manifest. In July, the Kiel police found and arrested a 36-year-old German national who had been released from prison and had failed to return to serve out a sentence for drunk driving. The man gave himself up when confronted and returned for the remaining 15 days of his sentence, according to Abdenblatt.
MSC Euribia is a brand new, family-oriented cruise ship with space for up to 4,800 passengers. It runs on LNG, and currently serves the German and Scandinavian markets. As of Tuesday Euribia was operating off Norway, with four planned port calls before returning to Kiel.
Union negotiations covering longshore workers on the East and Gulf Coasts have been stalled since June 10, bringing the union closer to a potential strike at the September 30 contract expiration.
Leaders of the International Longshoremen’s Association have called a September 4-5 delegates meeting to discuss demands and strike strategy. Last week the union sent the employer association, known as USMX, a strike notice that federal law requires 60 days before a strike.
The contract between the ILA and the USMX is one of the largest expiring this year, and a strike would have massive economic impact—billions of dollars per day.
Negotiations broke down in June over union allegations that the port of Mobile, Alabama, as well as other unnamed ports, had automated some processing of trucks entering and leaving the docks—work traditionally done by ILA members.
Union leadership and the USMX have not held public negotiations since.
STATE OF THE INDUSTRY
The ILA represents longshore workers on the East and Gulf Coasts and the Great Lakes, while the International Longshore and Warehouse Union (ILWU) represents longshore workers on the West Coast, and in Hawaii, Alaska, and Canada.
ILA President Harold Daggett is one of the highest-paid union leaders in the U.S.; last year through multiple salaries he made $900,000. Other ILA leaders also collect multiple salaries; among them is Daggett’s son, the executive vice president, who made $700,000 last year.
While the ports of Los Angeles and Long Beach on the West Coast are the nation’s largest by container volume, the next five busiest are on the East Coast and covered by the ILA/USMX agreement: New York/New Jersey, Savannah, Houston, Virginia, and Charleston.
Shipping traffic regularly gets rerouted between coasts for a variety of reasons, including the fear of labor disputes. During the 13 months of negotiations leading up to the ILWU’s contract settlement last year, employers were so uneasy that some took the “safer” route of sending cargo to East Coast ports that weren’t under threat of strikes or slowdowns.
Two other factors affect global shipping: the ongoing drought at the Panama Canal, which is limiting how many ships that can pass through, and attacks by Houthi rebels in Yemen, which have led many ships to take a longer route to avoid the conflict.
Nonetheless, companies that rely on ILA labor have done extremely well since the pandemic hit. Maersk, the world’s biggest shipping company, reported $9.8 billion in profits in 2023. An ILA report shows many USMX member companies made significantly higher revenues in 2022 than in 2021, and 2020-2021 were already bonanza years for global shipping.
Now profits have receded slightly, but they’re still higher than in the years before the pandemic, and higher than the last time the ILA negotiated a contract.
WHAT’S AT STAKE
The issues in the 2024 negotiations are familiar: wages and benefits to help workers catch up to (and beat) inflation, and employer attempts to chip away at union work, especially the threat of automation.
The ILA leadership negotiates in a black box, with no transparency around demands and no regular bargaining updates to members. The ILWU took a similar approach in its 2022-23 negotiations, largely keeping quiet about developments at the bargaining table—a departure from the past—and releasing sporadic joint statements with the West Coast employers.
Even without much information from the ILA, though, we can piece together a picture of where things might be headed.
The ILWU’s six-year contract settled last year is one potential indicator. The Wall Street Journal reports: “Daggett is pushing for a much higher pay increase than the 32 percent raise over six years secured by West Coast dockworkers.”
ILA leadership released a statement August 11 citing widespread violations of the contract—the employers have been instituting automation—and saying “we are very far apart, particularly on economic issues. In fact, we are at an impasse.”
ILA workers make less than their West Coast counterparts, and have lower pension payouts than ILWU members, if they get them at all. Port workers in Houston and Philadelphia receive no pensions. NY/NJ workers receive around 55 percent of what ILWU members do, but still almost twice what Virginia ILA members are paid out. The ILWU has a single coast-wide pension.
THE AUTOMATION THREAT
Automation continues to threaten longshore jobs on both coasts. Employers have developed two automated terminals within the ports at L.A. and Long Beach. The foremen’s local of ILWU Canada could strike in Vancouver, B.C., in the coming weeks over an employer’s threat to introduce automation.
“Full automation” is a bit of a moving target. The “fully automated” Long Beach Container Terminal still has longshore workers fastening and unfastening containers on ships and operating the “hammerheads,” the giant ship-to-shore cranes that bring containers to land. But the work on the docks that was once done by dozens or hundreds of people, moving the containers around the yard, is now done by driverless trucks and wheeled cranes called “strad carriers,” used for moving and stacking containers.
East Coast ports have not yet seen the same attempts at full automation. The current ILA contract prohibits “fully-automated terminals and… fully-automated equipment” during the life of the contract, a provision the USMX may try to weaken.
Some automation is already present in ILA ports, however. Some rail-mounted gantry cranes can handle most of their range of motion autonomously, with operators only needed for the beginning and end of a container move. But the trucks, gates, and other types of cranes are still operated more manually.
In the port of Philadelphia, a newly built terminal includes some “hybrid” equipment, which can be operated manually or be automated. For now, operating that equipment remains ILA work.
Longshore unions are extremely aware of the threat new technology poses to their jobs. The introduction and adoption of shipping containers starting in the 1950s radically changed the industry, decimating the workforce. With freight packed into shipping containers, fewer workers were needed to move the same volume of goods.
The ILWU and the ILA negotiated those impacts in different ways. The ILWU’s main plan, achieved through its Mechanization and Modernization agreement (starting in 1960) and a long strike in 1971, was to defend the existing workforce. Workers whose jobs were eliminated through modernization efforts could take retirement payments early.
The ILA negotiated a “container royalty” fund in 1960, in which every ton of goods that comes through an ILA-represented port in a container is assessed a fee, which is then distributed to workers. ILA members continue to receive these payments—and the union collects dues off of them at a 10 percent rate, considerably higher than the 0.9 percent dues rate on wages.
SHOWDOWN LOOMING?
For now, the conflict is largely playing out in press releases and media coverage. Until the union walked away from negotiations, members were completely in the dark about demands and progress. The Journal of Commerce reports, citing industry sources, that the ILA is seeking a $5-per-hour increase for each year of the contract,.
ILWU ports regularly experience disruptions during negotiations. As the 2022-23 West Coast negotiations dragged on, employers accused the ILWU of orchestrating work slowdowns. However, the ILA doesn’t have the same culture and has not yet held any public rallies, much less unofficial slowdowns, to pressure the USMX ahead of the expiration. A serious contract campaign featuring actions like these is often a crucial ingredient in strike preparation.
The last East-Coast-wide strike was in 1977, lasting seven weeks. The last major walkoff was a one-day action in New York and New Jersey in 2016, a protest against actions by a government oversight body, the Waterfront Commission.
In 2012, the union extended the deadline for months before coming to an agreement. The most recent contract, in 2018, was resolved that June, far ahead of the September deadline.
This time, Daggett has stated that the union does not intend to extend the deadline past September 30. He also rejected the prospect of government mediation. Mediators were involved in the resolution of the ILWU contract last year.
WILL BIDEN INTERVENE?
There will be significant political pressure to avoid a major, disruptive strike, especially so close to election day with inflation on voters’ minds.
This gives the union some leverage, because the federal government may pressure the USMX to settle; there will also be pressure on the union to settle, of course. It also suggests that the federal government would be more likely to step in, and more quickly.
The Taft-Hartley Act allows the federal government to seek an injunction in a labor dispute it considers a “national emergency,” forcing the parties back to work and into mediation with federal oversight. This is the mechanism that George W. Bush used to end the 11-day West Coast port lockout in 2002. These injunctions can also be preemptive, before a walkout begins.
This is a different legal mechanism than the one under the Railway Labor Act that Congress and President Biden used to preemptively settle the rail negotiations in 2022. Also, the conditions aren’t exactly the same: rail unions then were actively working with the government to settle the dispute, and many workers had already voted to accept the terms. And what does a lame-duck president do with a major labor dispute?
Of all the workers in the hugely important logistics industry, longshore workers have some of the greatest potential economic leverage. On the East Coast, they’ve also got a union leadership that has a reputation for insularity and little followthrough on militant pronouncements. So what happens next is hard to predict. Many corporations are watching the dispute closely
Dutch Environmental Protestors Block Amsterdam Arrival of Cruise Ships
Protestors block the cruise ship Jewel of the Seas from reaching Amsterdam (ER)
The Dutch environmentalist group Extinction Rebellion has begun targeting cruise ships seeking to call attention to its allegations of pollution and environmental impact. The group has so far blocked two cruise ships as the vessels were attempting to exit the locks leading to Amsterdam.
The Dutch group is citing the media reports after research released last week by the NGO Transport & Environment that cited the rapid growth in cruise travel. The NGO is calling for a tax on cruise tickets to help fund the development and distribution of alternative non-carbon fuels.
Seven protestors from Extinction Rebellion chained and glued themselves to the roadway bridge and gate at the Ijmuiden locks. Located at the mouth of the North Sea Canal, the new IJmuiden Marine Lock was opened in 2022 to accommodate larger vessels accessing the Port of Amsterdam. It is also a critical control to limit the entry of seawater into the inland freshwater flows.
The protestors arrived at the lock around 3:00 a.m. local time intent on deliberately preventing the Royal Caribbean International cruise ship Jewel of the Seas (90,000 gross tons) from returning to Amsterdam. The ship holds up to 2,700 passengers and was completing a cruise due to dock in Amsterdam at 0600.
Pictures show the protestors on the gate and waving torches to signal the ship. The group wrote in its statement, “Extinction Rebellion demands an immediate and total stop to the destructive cruise industry.”
The local police went to the scene but did not remove the protestors. A spokesperson for the police said as long as they were not endangering anyone’s welfare, there is a right to protest in The Netherlands.
The Jewel of the Seas backtracked and docked at the terminal in Ijmuiden with the cruise line saying it was because passengers were disembarking that needed to reach the airport for flights. The port authority organized eighty buses and trucks to move passengers either to the airport or into the center of the city and then to make the reverse trip for the returning and newly embarking passengers on Saturday evening. It required an approximately 25-mile bus ride that took up to 45 minutes each way.
The following day, on August 11, protestors returned to the roadway and gate to block another cruise ship, the Seven Seas Mariner (48,000 gross tons) of Regent Seven Seas Cruises. The ship which has a capacity of 700 passengers was also bound for Amsterdam. The group was again deliberately delaying the arrival of the cruise ship.
The Port Authority called the police and since the protestors were not willing to move away, the police ended the protest. The cruise ship was delayed by about three hours but was able to reach Amsterdam and depart yesterday without further disruptions.
It is unclear if the group will attempt to stage further protests against the cruise industry. The Jewel of the Seas is due to return to Amsterdam on August 22 for its final port call of the summer season.
The protest also followed the news in June that the city government of Amsterdam plans to limit and then move cruise ships away from the city center dock. By 2026 the plan calls for limiting cruise ship calls followed by a requirement for the ships to use shore power while on dock. The city is exploring entirely banning cruise ships and moving their dock to the west by 2035.
