Wednesday, October 02, 2024

 

Video: Taiwan Air Service Pulls Off Daring Rescue of Seafarers in Typhoon

rescue off Taiwan
Crew was sucessfully hoisted from the stranded bulker as the typhoon approaches Taiwan (Taiwan Coast Guard)

Published Oct 1, 2024 4:50 PM by The Maritime Executive

 

 

Taiwan’s Air Service Corp was able to rescue 19 crewmembers from a bulker that was taking on water and driven on the rocks as a strong typhoon approached the island. The crew was lifted by helicopter and transferred to shore while Taiwan reported a possible oil leak from the vessel as it prepared for the typhoon to come ashore on Wednesday.

The bulker Blue Lagoon (79,474 dwt) was transporting 67,500 tons of ore from China to Singapore when the vessel called for assistance at 0428 local time on Tuesday, October 1. The ship was about 20 miles from Orchid Island near the southeastern tip of Taiwan when it encountered the onset of Typhoon Krathon. According to the authorities, winds were at Level 11, and seas were over 20 feet.

 

 

The vessel had a crew of 19 aboard, including seven from Ukraine, nine from Egypt, and three from Russia, when it reported that it was taking on water in its engine room.  Approximately an hour after the first call, the captain told the authorities in Taiwan that they were preparing to abandon ship. Built in 2010, the vessel is registered in Panama. According to the Equasis database it was sold at the beginning of this month and is now being managed from Latvia.

A Taiwanese Coast Guard vessel from Kaohsiung was attempting to reach the vessel. The Air Service was able to get a helicopter to the vessel shortly after 0600 but reported the winds were too strong to start a hoist operation and it was returning to base. However, there was a break in the winds, and between 1100 and 1400, the crew was successfully airlifted. The crew of the coast guard vessel risked going on deck and assisted in the hoist and transfer of the crew.

 

 

The vessel was driven ashore and the authorities were monitoring it. They reported possibly sighting of oil in the water. The vessel is carrying 39 tons of MGO (Marine Gas Oil) and 227 tons of VLSFO (fuel oil). Pictures show the waves crashing over the vessel on the coastline while the authorities emphasized the typhoon is not expected to make landfall in Taiwan until Wednesday. It currently has sustained winds of over 120 mph and gusts over 150 mph raising widespread concern for the impact on the island.

In July, multiple vessels were driven ashore in another typhoon. The authorities are reporting that they are in the process of dismantling one ship (Keta) and that two others (Dolphin and Sophia) remain on the shore. They were taking precautions to prevent further pollution from these vessels as the typhoon hits Taiwan.

 

New Jersey’s First Offshore Wind Farm Gets Final Approvals from BOEM

offshore wind farm
New Jersey's first offshore wind farm received its final federal approval before starting construction (file photo)

Published Oct 1, 2024 8:36 PM by The Maritime Executive

 


The Atlantic Shores South project, which would consist of two large offshore wind farms, received its final approval from the Bureau of Ocean Energy Management. It is a critical step for a state that says it is dedicated to making clean energy a priority but which continues to suffer setbacks in its ambitions.

The project is a 50/50 partnership between Shell New Energies US and EDF-RE Offshore Development and will become New Jersey’s first offshore wind energy site. BOEM approved the construction and operation plan for the development which calls for up to 2.8 GW of power between two equally sized projects. They highlight it could power up to one million homes.

Called Atlantic Shores 1 and 2, it will be located at its closest point at nearly nine miles from the Jersey coast but the company has previously said construction will be at least 12.8 miles from shore. It will be in a region between Atlantic City, Sea Girt, and Long Beach Island in southern New Jersey.  The plan calls for up to 197 wind turbines as well as the necessary substations and other equipment.

“Securing these critical approvals enables New Jersey’s first offshore wind project to start construction next year and represents meaningful progress in New Jersey achieving 100 percent clean energy by 2035,” said Joris Veldhoven, Chief Executive Officer, Atlantic Shores Offshore Wind. He said the first phase Atlantic Shores 1 would start moving forward and that the second phase would build on the first-mover success to drive the state over the next decade.

The project is moving forward despite significant local opposition. Various groups have fought to prevent the development of the project. 

For New Jersey, it represents a restart after Ørsted canceled its two large projects in 2023 which were expected to be the first in the state. New Jersey has other projects in the development pipeline but they too have encountered difficulties.

Last week, the New Jersey Board of Public Utilities granted Leading Light Wind a pause on its project through December 20. The project is in the licensing phase after having been selected by the state but the developer which is a partnership between two American companies, Invenergy and energyRe, reporting it is having problems securing a supplier agreement for its turbines. The plan calls for it to be located over 40 miles off the coast, generating 2.4 GW of energy. Construction was projected to begin by 2028 and be in operation by 2031.

New Jersey also ran a solicitation over the summer but reported it only received three proposals in July. That included Atlantic Shores, which was seeking to reset a prior price agreement as well as Attentive Energy which was the other developer selected in January alongside Leading Light. They are proposing a second phase while Community Wind also resubmitted a reworked proposal for a project that was previously passed over in the selection process. The state said it would announce its steps forward by December.

FLOATING BOMB

UK is Latest to Track Movement of Cargo Ship Laden with Ammonium Nitrate

bulker at anchor
Ruby is anchored off the English coast drawing new scrutiny (file photo)

Published Sep 27, 2024 10:08 PM by The Maritime Executive

 

 

The Malta-registered cargo ship Ruby continues to attract worldwide attention with the UK maritime authorities being the latest to be observing the ship’s movements. Laden with 20,000 tons of ammonium nitrate which was reportedly destined for the Canary Islands as fertilizer the hazardous nature of the cargo has created international attention aboard the vessel which was damaged in an Arctic storm.

After being turned away from ports in Norway, Lithuania, and Sweden and placed under restrictions for its movements by the Danish authorities, Ruby instead started south declaring its destination as Malta. Managed by a company from the UAE, the vessel is registered in Malta and the local authorities as the vessel’s port state have been involved in the efforts to find it a port of refuge. 

The ship reached the northeastern end of the English Channel and anchored between the Netherlands and the UK and then positioned off the coast of Kent, England. It created widespread media coverage and speculation over its movements. This is despite assurances from the authorities in Norway, Sweden, and elsewhere that the cargo is safely loaded and that there is minimal danger of an explosion.

With the vessel laying about 14 miles off Kent, HM Coastguard found itself having to respond to media speculation. It confirmed that it is aware of the vessel reporting in its statement that it is "currently securely anchored outside UK territorial waters." They said they are in “regular contact,” with the ship.

A spokesperson told Express.co.uk that Ruby was "waiting for appropriate conditions to refuel at sea before passing through the English Channel." They however clarified that the vessel was not restricted and did not require any form of permission to proceed. However, the flag state and DNV as its class, are reported to have agreed that the ship because of a crack in the hull and damage to the propeller and rudder, should be accompanied by a tug while underway. Her escort, Amber II, an anchor handler also registered in Malta, docked in the Netherlands possibly taking the time while Ruby is at anchor for her own replenishment or relief for the crew.

The outcome of the situation remains unclear. Maltese authorities have also told the local media that they would not accept the ship into port unless it unloads its cargo first. Lithuania placed the same restrictions when it was announced the vessel would be going to Western Shipyard for repairs.

The latest speculation is that the managers are looking for smaller vessels so they could transfer the cargo for storage. 

 

Ocean Plastic Cleanups May Do More Harm Than Good

Critics say removing ocean plastic can be expensive, harmful to animals and detract from efforts to stop waste at source

Ocean Cleanup
File image courtesy Maersk / Ocean Cleanup

Published Sep 29, 2024 4:40 PM by Dialogue Earth

 

 

[By Emma Bryce]

When fishers in China’s Zhejiang province return home each day, they haul ashore more than fish. Over the past four years, 11,000 fishers have together unloaded over 2,800 metric tonnes of plastic, mainly fishing nets.

They are paid around 1 USD per kilogram by Chinese environmental initiative Blue Circle for this, along with a share of the profit from the sale of recycled plastic pellets to manufacturers who make new goods out of the processed waste.

The fishers “all know that they are contributing to environmental protection and making the ocean cleaner”, says Xianhua Mao, a technical expert with the organisation.

The UN Environment Programme (UNEP) has recognised Blue Circle for its achievements. It is part of a growing group of organisations and companies worldwide that have responded to the environmental threat of plastic with projects to sift out, slurp up, net, and otherwise trap tonnes of waste from beaches, rivers and oceans.

 

Rebecca Helm, marine ecologist, Georgetown University

But as plastic-fishing projects attract public attention and millions in funding, some experts are sceptical. They fear some schemes can do unintended harm and may even stall efforts to reduce plastic waste in the first place.

The toll of drones, bots, and nets

One thing is clear: plastic is an environmental threat of epic proportions. An estimated 1.7 million tonnes enters the ocean each year, where it entangles, starves, and kills millions of animals; smothers coral reefs; and breaks down into micro- and nano-sized particles that enter the food chain.

But “plastic pollutes habitats, ecosystems, places where animals already live”, says Rebecca Helm, a marine ecologist at Georgetown University. “So taking plastic out using something like big nets is going to take life out with it.”

In a 2023 paper, Helm joined a group of concerned researchers who cautioned against what they called “the fallacy of plastic cleanup technology”.

Drones and robots designed to skim plastic off water surfaces risk pulling in creatures, they say. Other devices have been shown to capture significant amounts of sea life along with plastic.

The technology keeps advancing. Small, industrious robots are now proliferating across beaches worldwide, constantly sieving out plastic.

When conducting research for the study, Melanie Bergmann, the paper’s lead author, was alarmed by examples of such sand-sieving robots. “What kind of ecosystem will be there after that?” asks Bergmann, a marine ecologist at the Alfred Wegener Institute in Germany. “It’s a habitat; it’s full of organisms that live there, and if you destroy it all the time, that’s not very beneficial either.”

Garbage patch or ecosystem?

The so-called Great Pacific Garbage Patch is home to the most widely publicized plastic-fishing projects. Here, Netherlands-based outfit The Ocean Cleanup has a huge net-fringed boom that uses ocean currents to herd in plastic from the surface of this gyre in the North Pacific. It has also deployed dozens of plastic-catching booms in rivers worldwide and describes its efforts as “the largest cleanup in history”.

But the gyre is home to an array of surface-dwelling organisms that can be swept up with the plastic, including sea dragons, by-the-wind sailors, and snails. Running a cleanup operation through it could significantly disrupt the ecosystem and trap marine animals, scientists including Helm have warned. “It’s an extremely rich habitat in the North Pacific, so much so that I don’t even like calling it the Garbage Patch,” says Helm. “It is an ecosystem.”

The Ocean Cleanup’s own environmental impact assessment states that almost 700 kg of fish, including sharks, molluscs and turtles, were ensnared in one of its systems over the course of 12 cleanup trips.

Though this is “less than a percent of the total amount of plastic catch”, it raised concerns because “we are here to protect marine life, not kill it”, says Matthias Egger, head of environmental and social affairs at The Ocean Cleanup. He adds that the organization submits to regular independent environmental impact assessments and that its systems have been designed to allow turtles to escape. It has made changes both to the design and use of its system over the years to try and reduce the impact on marine life.

An upstream battle

Cleanups face mind-boggling quantities of waste. By 2040, global plastic production could increase by 66% on 2019 levels. With landfills under increasing strain, researchers estimate it could nearly triple the amount of plastic entering the ocean by the same year.

The Ocean Cleanup estimates that since its operation started, it has removed 0.5% of the plastic from the North Pacific gyre, or just over 450 tonnes. In April, the organization announced it had cleaned up 10,000 tonnes worldwide since it started collecting in 2019. Estimates of plastic ending up in the ocean every year range from 1 to 2.4 million tonnes.

“The efficiency of the whole thing is very, very limited,” says Ewoud Lauwerier, a plastic policy expert at the nonprofit Ocean Care.

The Ocean Cleanup’s core goal is to remove 90% of floating plastic from the global ocean by 2040. Egger says the organization’s data shows this is achievable if it deploys dozens more cleanup devices in rivers and the ocean. The organisation believes humanity needs to reduce plastic production to stem the flow of marine waste, but that this could take years, Egger says.

There are also questions over what becomes of the plastic that cleanup efforts retrieve. Some groups claim to recycle ocean plastic into new goods, but a glut of cheap new virgin plastic has shrunk the market for recycled materials, and ocean plastic is often low quality. This raises the question of how much of the retrieved plastic will end up in landfills or incinerators.

The cost of cleaning up

The stakes have been raised by work towards creating an international treaty to end plastic pollution, which nations have pledged to finalize by the end of 2024. The treaty could establish a global cap on the amount of plastic produced. But there also exists increasing political and financial interest in downstream measures, including cleanup.

The Innovation Alliance for a Global Plastics Treaty brings together dozens of companies and nonprofits that are developing ways to tackle plastic pollution, and is spearheaded by The Ocean Cleanup. It has already requested that the treaty include mechanisms to finance innovators in all areas of plastic to the tune of $30 billion a year.

It would cost The Ocean Cleanup more than $10 billion each year to collect 90% of the plastic that enters the ocean annually, according to a report published by the Environmental Investigation Agency (EIA) and Ocean Care. This figure doesn’t include plastic already in the ocean.

Millions of dollars have already been channeled towards cleanup projects via donations from major users of plastics, petrochemical producers of plastic, and an industry-funded organization called the Alliance to End Plastic Waste.

“The amount of money that it might cost us to manage all the waste we’re potentially going to produce in the future … it’s almost unfathomable,” says Jacob Kean-Hammerson, a campaigner for the EIA’s ocean program. "If the focus remains on plastic retrieval, “we’d be stuck in a situation of perpetual cleanup."

To clean or not to clean?

Despite the uncertainties, even skeptics believe cleanups are needed in some circumstances. Experts agree there is a clear case to intervene in locations like trash-choked rivers, or the coastlines of small island states that receive tonnes of tidal waste.

Jannike Falk-Andersson, a senior researcher at the Norwegian Institute for Water Research, says that where cleanup is needed, it should be regulated. Projects could also be required to report what happens to the retrieved plastic, she says. China’s Blue Circle, for instance, uses blockchain technology to trace plastic, which is how they know that over 40% of plastic that fishers deliver to them has been recycled.

Ocean cleanup need not cost billions, as several experts Dialogue Earth spoke with noted. They mentioned the Ocean Voyages Institute as a cost-effective example. Its volunteer sailors use hooks and poles in the North Pacific Gyre to retrieve “ghost gear”, or discarded fishing equipment. This low-tech method limits bycatch and has collected 362 metric tonnes of plastic from the North Pacific.

Ultimately, prevention, by limiting plastic production and stopping plastic waste from entering the sea, is the best long-term action we can take to realize a largely plastic-free ocean.

In the meantime, Falk-Andersson says there is one thing everyone can do to play a part: “The best way of doing cleanups is by hand. Don’t walk past the next piece of plastic: pick it up.”

Emma Bryce is a freelance journalist who covers stories focused on the environment, conservation and climate change.

This article appears courtesy of Dialogue Earth and may be found in its original form here

 

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

Sinking Chinese Sub Shows the New, Speedy Nature of Naval Intelligence

Type 41
USN file image

Published Sep 29, 2024 2:09 PM by The Lowy Interpreter

 

 

[By Sam Roggeveen]

Earlier this year, the eagle-eyed American observer of China's military, Tom Shugart, spotted some unusual activity at a Chinese shipyard. Tom is a former US Navy submariner who these days spends a lot of time examining satellite photos and then piecing these together with other bits of evidence appearing on the internet to form sharp judgments about the rapid modernisation of China's military. You can get a sense of Shugart's work through this paper he wrote for the Lowy Institute in 2021.

In this case, the satellite photos appeared to show a number of crane barges clustered around a submarine that was docked at Wuchang Shipyard, where China is known to build diesel-electric submarines and surface ships for its navy. 

The incident occurred in May. The reason to mention it now is that The Wall Street Journal has just run a story with quotes from anonymous US government sources claiming that the submarine in question sank while pier-side. The activity spotted by Shugart therefore may have been a salvage operation.

There are some unusual elements to this story, the main one being that the submarine in question is a previously unheard of new design called the Type 041, which according to the US government source is nuclear-powered. Yet the Wuchang Shipyard isn't known for producing nuclear-powered submarines. Also, can a submarine even sink in what are apparently very shallow waters? The Journal story says "American officials haven’t detected any indication that Chinese officials have sampled the water or nearby environment for radiation." 

Observers are already speculating about what this means for China's effort to modernise its submarine fleet, with this article playing down the broader significance. India's Observer Research Foundation recently published an analysis of a new shipyard in China that will pump out new designs at a more rapid pace than the United States can match. We might see this incident as evidence that China's military is suffering under the weight of corruption. Then again, submarine accidents are not unheard of, even in the most competent military forces.

It's also worth considering the motives behind the US government's decision to release this information to The Wall Street Journal. Who gains? Certainly, it creates embarrassment for China, but it may also be that, in this case, the United States has adopted a "use it or lose it" approach to its intelligence. As Interpreter contributor Ben Scott argued in March: 

...the age-old trade-off between preserving and using intelligence is shifting in favour of use...The United States and United Kingdom...sought to operationalise intelligence in the lead-up to Russia’s 2022 invasion of Ukraine, declassifying and disseminating material with extraordinary speed and breadth.

The shift in favour of operationalising intelligence is driven by both intensifying geopolitical competition and the rapidly evolving information environment. The digital revolution is disrupting “business as usual”, including by breaking down Cold War categories of “secret” and “open-source” information. Secrets have a reduced shelf life.

Because open source intelligence is now so ubiquitous (including satellite imagery of a standard that was once the sole province of intelligence agencies), governments are erring further on the side of disclosure to maximise the political impact of their secrets.

Finally, it’s worth noting that Chinese netizens are claiming the entire story is bogus. That may yet turn out to be true, but this would be a high-risk strategy on America’s part. The “operationalising” of intelligence only works if the media organisations you are leaking to actually believe you. The declassification of Russia’s invasion preparations was a success for the US because it turned out to be accurate, so the US would seem to have good reason to avoid releasing information that can be easily falsified. 

Sam Roggeveen is Director of the Lowy Institute’s International Security Program. He is the author of The Echidna Strategy: Australia’s Search for Power and Peace, published by La Trobe University Press in 2023.

Before joining the Lowy Institute, Sam was a senior strategic analyst in Australia’s peak intelligence agency, the Office of National Assessments, where his work dealt mainly with North Asian strategic affairs, including nuclear strategy and Asian military forces.

This article appears courtesy of The Lowy Interpreter and may be found in its original form here

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

ILA Goes On Strike for the First Time Since 1977

ILA protestors
ILA protestors in June 2024 showing support for union leadership (ILA)

Published Oct 1, 2024 1:29 AM by The Maritime Executive

 

The International Longshore Association has launched its first strike in nearly 50 years. After months of warnings, the group's 45,000 members began a walkout at midnight Eastern Time, shutting down operations at 36 ports from Texas to Maine. The ILA cast the shutdown in existential terms, warning that terminal operators would cut jobs and introduce more automation if the union didn't prevent it. 

“The ILA is fighting for respect, appreciation and fairness in a world in which corporations are dead set on replacing hard-working people with automation,” the ILA said in a flyer distributed to its picketers. “Robots do not pay taxes and they do not spend money in their communities.”

After pressure from the Biden administration and trade groups, word leaked out late on Monday that there had been contact between the sides raising a final glimmer of hope for progress. The employers represented by the U.S. Maritime Alliance (USMX) are reported to have raised their offer, leading to some talk between the sides - but not enough to stave off a strike. 

The ILA’s stance, according to The Wall Street Journal was that it would not begin negotiations until the employers agree to a 77 percent increase in wages for the new six-year contract. The master contract will also have to tackle issues regarding automation at the ports, benefits, and work rules. The employers represented by the U.S. Maritime Alliance (USMX) were believed to be standing at an offer of an approximately 40 percent wage increase and maintaining the prior rules regarding automation.

A leaked internal memorandum from USMX appears to show the offer was increased to "nearly 50 percent" but USMX asked for an extension to complete the deal. 

 

 

Union President Harold Daggett said that blame for the strike lies with the USMX, while the employers had repeatedly said they were ready to start negotiations. The union says USMX “refuses to address a half-century of wage subjugation,” while citing the profits made by carriers, especially during the surge in shipping during and after the pandemic.

“The ocean carriers represented by USMX want to enjoy rich billion-dollar profits that they are making in 2024, while they offer ILA longshore workers an unacceptable wage package that we reject,” the ILA said in its final statement before the strike. “ILA longshore workers deserve to be compensated for the important work they do keeping American commerce moving and growing.”

The ILA refused media interviews on Monday. It also declined to provide details on when and where the picketing would begin only saying that members would walk off at 12:01 am on October 1.

As late as Friday in an update to customers, Maersk said it was mostly still accepting bookings as normal. The exceptions include bookings for refrigerated containers outbound from inland locations via the U.S. Atlantic and Gulf Coast. Analysts have said imports and exports of perishables would be the first to feel the impact of the strike, potentially leading to shortages of items like bananas and cherries initially.

As the strike goes on, analysts point to an impact on raw materials and industrial goods, vehicles, and later consumer goods. Some items such as imported alcohol, wine, and beer would likely first be impacted and later broader lines of consumer goods. The expectation is that retailers have stockpiled inventories ahead of the anticipated strike but some importers are already talking of flying goods at higher cost, which is likely to be passed on to the consumer.

The expectation is that carriers will initially anchor vessels. Companies such as Ocean Network Express (ONE) and Maersk have said they would anchor their ships and review their status daily. The ILA has promised not to stop military cargo and passenger shipping. Tankers and bulkers use different terminals not covered under the ILA contract.

Analysts vary on the cost of the strike to the U.S. economy. CNN cites a Michigan-based research firm, Anderson Economic Group, saying the direct costs of a one-week strike could be about $2.1 billion. Analysts at JP Morgan and Jefferies have set the total cost to the economy in the range of $3 to $4.5 billion a day. Some estimates are as high as $5 billion per day.

The Biden administration's position continues to be that it is a collective bargaining issue and that it would not invoke its power to impose a cooling-off period or mediation. After speaking with both sides last week, reports are the administration was encouraging the employers to improve their offers over the weekend while publicly calling for resuming talks and a quick resolution.

ILA Declares “Ports Are Ours” as Leaders Threaten Strike “Will Cripple You"

ILA strikers
ILA members hit the picket lines at 12:01 a.m. on October 1 (ILA)

Published Oct 1, 2024 2:39 PM by The Maritime Executive

 

 

The leadership and rank-and-file membership of the International Longshoremen’s Association were fired up in the first hours of their first coastwide strike in nearly 50 years. An estimated 25,000 or more members hit the picket lines from Maine to Texas as carriers and shippers scrambled with their contingency plans and President Joe Biden put out a statement in support of the union calling for a quick resolution.

The ILA in its official statement said it rejected U.S. Maritime Alliance’s final proposal made on Monday, which USMX said called for a nearly 50 percent wage increase. “The USMX last offer fell far short of what ILA rank-and-file members are demanding in wages and protections against automation,” the union declared in its statement.

Union President Harold Daggett put out a video threatening to “cripple you,” lecturing on the nature of port operations. He said it is time for the carriers and their terminal companies to share their massive profits made during the pandemic with the dockworkers. He is demanding the companies “compensate the American LIA longshore workers who perform the labor that brings them their wealth.”

 

 

“We are prepared to fight as long as necessary to stay out on strike for whatever period of time it takes, to get the wages and protections against automation our ILA members deserve,” said Daggett.

Government officials sought to downplay the short-term impact saying that businesses were well stocked and prepared for the strike. They said there should be little immediate impact on consumers while others such as The Conference Board issued more dire warnings that the strike would “paralyze U.S. trade.”

Port officials varied but the executive director of the Port Authority of New York and New Jersey said nearly 100,000 containers are waiting to be offloaded in the NY/NJ port area. He said 35 ships had been scheduled to arrive in the coming week.

Broad support is being voiced for the strikers. The Teamsters union which represents drivers among others highlighted its support while reminding members “Teamsters do not cross picket lines.”

President Joe Biden issued a statement reiterating his belief in collective bargaining. He said he had urged USMX to “come to the table,” and to present a fair offer to ensure dockworkers are paid appropriately. He also said they would be monitoring the situation including looking for any price gouging activity that benefits foreign ocean carriers.

“It’s only fair that workers, who put themselves at risk during the pandemic to keep ports open, see a meaningful increase in their wages as well,” said Biden highlighting the record profits of the foreign-owned carriers. “Now is not the time for ocean carriers to refuse to negotiate a fair wage for these essential workers while raking in record profits.”

 

Harold Daggett doing interviews at the start of the strike (ILA)

 

Daggett speaking on CNN however praised Acting Labor Secretary Julie Su saying she had “knocked down doors” and was trying to settle the contract dispute. He said she was trying to get fair negotiations.

While the administration is vowing not to act, expectations are that the pressures will mount if the strike drags on. Daggett said they would choke off vehicle deliveries, raw materials for construction, and other supply chains resulting in layoffs in other industries. He asserts people do not know what a strike is today.

“We expect the strike itself to last for five to seven days until a government intervention... but the ripple effect is likely to be felt across the whole networks into Europe, into Asia for at least into January, February," said Peter Sand, chief analyst at Xeneta.

Maersk issued an advisory last night telling customers that they should hold on to empty containers until the strike was over. They said Maersk did not have arrangements for empty storage space and advised customers to speak with the representatives about shipping alternates. More carriers have also announced additional fees. CMA CGM immediately invoked Force Majeure imposing fees on refer boxes and truck chassis but suspending D&D charges and extending free time.

USMX representing the employers responded Tuesday afternoon saying its last offer of a nearly 50 percent wage increase "demonstrated a commitment to doing our part to end the completely avoidable ILA strike." It said it was "looking forward to hearing from the union about how we can return to the table and actually bargain, which is the only way to reach a resolution.”


Cranes stand still as US dockworkers fight for ‘future’


By AFP
October 1, 2024



Shipping containers are stacked as dockworkers are on strike in Port Newark on October 1, 2024 in New Jersey - Copyright AFP Bryan R. SMITH



Elodie MAZEI

Just a short drive from the New York skyline, giant cranes, containers, and machiney stand motionless behind closed gates.

The International Longshoremen’s Association (ILA), 85,000 members strong, has launched its first strike since 1977 after weeks of deadlocked negotiations over a six-year labor agreement.

“It’s not just money, it’s our future,” declared Herbert Hall, a 76-year-old vice president of the dockworkers’ union.

Speaking from a picket line outside the APM terminal in Elizabeth, New Jersey, he raises his voice over blaring music and honking traffic.

“We’re talking about machines, artificial intelligence, and all that stuff. We want job security.”

The port, like dozens along the East Coast and Gulf of Mexico, has ground to a halt.

Around 400 strikers have gathered, some lounging in camping chairs, sipping coffee, and enjoying free burgers from a food truck.

Union logos adorn their jackets and T-shirts, while picket signs voice their concerns: “Machines don’t feed families,” “Profit over people is unacceptable,” “Automation harms families.”

Jonita Carter, a docker for 23 years with the Maher company, emphasizes their dedication: “We worked during COVID, we never stopped. We moved the world.”

“If it’s zero degrees, I’m outside. If it’s 40 degrees, I’m outside. We don’t ask for much. We’re asking for a small portion, which we rightly deserve.”

– ‘Not playing fair’ –

The strikers’ main priorities are better wages and guarantees against automation.

While some protections were included in the recently expired labor agreement, and the United States Maritime Alliance (USMX) — representing port employers — has pledged to renew them, union members find these insufficient.

“We want better protections,” insisted Hall, citing developments at the port of Mobile, Alabama, which strikers feel violate previous commitments.

Joe Losada, 57, agreed: “They’re not playing fair. These are generational jobs… We have to keep these jobs and protect them.”

His daughter represents the fourth generation of his family to work at the port.

Family ties are common among port workers. Carter joined through her godfather, and her niece followed suit.

“Most people here have family ties,” she noted.

“I want my colleagues to be able to pay for their children’s university, I want to have good health insurance. But everything is increasing, everything is automated.”

Despite USMX announcing resumed talks and offering a 50 percent pay rise, the ILA rejected it.

Losada explains, “on the face of it, it looks good, but we haven’t had a raise in a while… and when you factor in 30 percent inflation, they’re only offering us 20 percent.”

As the strike continues, workers remain resolute.

“Nobody wants a long strike… but we need what we need,” said Losada.

Carter echoes his sentiment: “I’m ready. We’re going to stay together.”

White House Meets with Terminal Operators Ahead of Looming ILA Strike

White House
Administration officials met with employers calling for negotiations to resume for the dockworkers contact (White House official photo)

Published Sep 27, 2024 6:45 PM by The Maritime Executive

 

Going into the final weekend before the threatened strike that would stop container and RoRo operations at 36 U.S. ports, the White House summoned representatives of the terminal operators and employers to a meeting. In the official readout on the meeting, the White House said that it had a similar conversation with the leaders of the International Longshoremen’s Association during the week.

The official report said that the meeting was headed up by Transportation Secretary Pete Buttigieg, Acting Labor Secretary Julie Su, and top White House economic adviser Lael Brainard. They were reported to be meeting with the U.S. Maritime Alliance officials although it did not specify which executives were representing the organization. USMX’s membership consists of container carriers, terminal operators, and port associations.

The meeting comes as the employers and union remain at a deadlock and have not had formal negotiating sessions for the master contract that covers approximately 45,000 longshore workers at ports from Maine to Florida and along the U.S. Gulf Coast. USMX acknowledged earlier in the week that it had received outreach from the federal government while saying the ILA continued to refuse to resume negotiations. USMX failed an “unfair labor” notice seeking the government to compel the ILA leadership to negotiate.

In the war of words being played out in statements, the leadership of the ILA said there had been contact between the sides but called the wage proposals from the employers “unacceptable.” They said the employers were unfair in the low wage offer. Automation issues are not being mentioned but are reported to be a major element of the new contract with the ILA saying it rejects all automation or semi-automation as a job killer.

White House officials confirmed today’s meeting as well as the messages with the ILA without providing any details. They said they were conveying directly "that they need to be at the table and negotiating in good faith fairly and quickly." 

Unidentified individuals from the Biden administration previously said they had not moved in the nearly four years of the presidency to break a union strike and it was not their intent now. They believe disputes need to be settled by negotiation, but also are closely looking at the current situation and the ramifications for the supply chain and the economy. Last year, Jule Su was credited as being instrumental in driving the contract agreement between the West Coast employers represented by the Pacific Maritime Association and the International Longshore and Warehouse Union.

Analysts point out that the White House has few options especially just weeks before the presidential elections. Trade organizations and elected officials are all pressuring the administration to intervene. It could invoke the Taft-Hartley Act which would mandate a cooling off period and negotiations. Short of that, its only option is outreach and cajoling the two sides back to the negotiating table. 

The six-year contract is ticking down due to expire at midnight on September 30 with the ILA saying it will not extend past the deadline. The union has been preparing for a long time for what its leadership has called “the biggest battle the ILA has faced in 47 years.” The last strike was in 1977 and lasted 44 days.



Global Schedule Reliability Remained Stable in 2024 Ahead of U.S. Strike

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Schedule reliability stabilized in 2024 ahead of the U.S. port strike (file photo)

Published Sep 30, 2024 4:11 PM by The Maritime Executive

 

Carrier schedule reliability stabilized in 2024 after the shocks coming from the Red Sea diversions and issues at the Panama Canal.  By pressing extra vessels into operation and management carriers were able to level off after significant drops from 2023 but that is before the anticipated impacts of the strike at U.S. East/Gulf Coast ports starting at midnight tonight, September 30.

“Schedule reliability in 2024 has stabilized within the 50 to 55 percent range,” highlights Alan Murphy, CEO of Sea-Intelligence. “While disappointingly low, the minimal volatility this year does give shippers a relatively good idea of what to expect month to month.”

In August 2024, global schedule reliability improved by just 0.7 percentage points month over month up to 52.8 percent. It was the smallest percentage movement of 2024 but it is down over 10 percentage points from a year ago. The average year-to-date for 2024 is just over 53 percent versus a 62 percent average for 2023.

Carriers had to manage the diversions from the Red Sea went caused schedule reliability to plunge to just over half of all vessels in January 2024 versus over 62 percent in November 2023. Now they face a similar challenge that could tie up numerous vessels along the U.S. eastern seaboard as the International Longshoremen’s Association plans to stake its strike tonight at more than 30 ports. Atlantic trades have limited options for diversions with carriers reporting they plan to initially anchor vessels.

In August, congestion backlogs also remained stable. The average delay for late vessels according to Sea-Intelligence remained at just over five and a quarter days in August largely unchanged over four months. The industry however recovered from delays well over six days in January 2024. However, it is still far below the 4.7 days reported in August 2023.
 
The current average delay for late vessel arrivals Murphy notes was “only surpassed by the pandemic highs of 2021-2022.” This number however will increase dramatically in October if vessels continue to wait offshore for a strike resolution.

The performance is also significantly off from the industry’s goals. Maersk was the most reliable top-13 carrier in August 2024 with schedule reliability of 54.7 percent, followed by Hapag-Lloyd with 54.3 percent. The two carriers however continue to reiterate their goal for the new network to be established with the Gemini Cooperation is for schedule reliability above 90 percent.

During August, Maersk’s schedule reliability was largely unchanged while Hapag showed a better than 5 percentage point improvement. Many of the top carriers (COSCO, HMM, ONE, OOCL, Yang Ming) all had strong month-over-month improvements. However, four carriers including MSC Mediterranean Shipping Company showed declines in August with PIL, Wan Hai, and Zim each showing the largest declines month over month.