The JOC’s annual Transpacific Maritime Conference, or “TPM” for those in the industry, was held last week in Long Beach for the first time in two years. TPM brings together carrier executives, shippers, regulatory agencies, ports and other major stakeholders in the ocean freight supply chain to discuss the most pressing issues facing the trade today and tomorrow.
Under the cloud of COVID, an expiring waterfront contract and the start of Russia’s unprovoked war on Ukraine, presenters, panelists and attendees alike had multiple issues to discuss. Vince Iacopella and others from Alba attended and in their opinion, here are three issues that warrant monitoring through 2022.
Waterfront labor negotiations
The coastwide contract between the Pacific Maritime Association (employers) and the International Longshoremen & Warehousemen’s Union (ILWU) expires June 30, 2022. The contracts normally run for a duration of three to five years. The last several rounds of negotiations have felt contentious and coming off two years of pandemic conditions and now a war, the last thing anyone wants is the possibility of an interruption. Whether carriers or shippers who have voiced their concerns publicly and in writing to the White House, everyone involved wants to see the negotiations concluded in time, to everyone’s satisfaction and remove one less point of exposure to transpacific trade.
Outdated supply chains need updating
White House Port Envoy John Porcari spoke and said that the way supply chains have operated to date are in need of modernizing. The Task Force’s work and their report underscored the need to make investments, and the infrastructure bill which passed last year saw $450 million committed to port grants this fiscal year and more than $2 billion over the life of the legislation.
FMC, Congress, looking to reforming OSRA
The Ocean Shipping Reform Act passed the House and another version is actively being debated in the Senate. The administration’s concern so extends to what is happening that it earned a mention in the President’s State of the Union address. The concern over carrier actions has led the FMC and Department of Justice to reaffirm their partnership and the so-called Five Eyes countries (US, UK, Canada, Australia and New Zealand) are examining cartel-like behavior over the past two years.
For shippers, a reform of OSRA would mean a higher bar for carriers who are charging and collecting demurrage and detention charges as well as providing regulatory agencies with greater power to pursue civil or criminal remedies, if warranted.
Look to Alba to stay abreast of these rapidly moving stories
At Alba Wheels Up, our job is to pay attention to these issues affecting not just southern California’s ports, but the wider US and global supply chains. We subscribe to the publications, we are members of key associations and our executive team has decades of experience and are widely networked to ensure that we are among the first to hear what will affect our clients and to help them plan accordingly. For more information, contact your Alba representative today.
