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Strikes Resume at Port of Liverpool following 11 Percent Pay Rise Rejection

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Archives, Global Logistics, Global Trade Daily, Ocean Ports

Strikes Resume at Port of Liverpool following 11 Percent Pay Rise Rejection

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The latest round of strikes gets underway today at the Port of Liverpool following another broken down period of negotiations between employer and dockworkers.

The walkouts affecting Liverpool’s container works will run from 24 October to 7 November in a months-long dispute between owner and operator Peel Ports Group (PPG) and Unite the union members.

In the latest round of talks, Peel Ports offered an 11 per cent pay offer, increasing average annual salaries to more than £43,000 ($48,600).

Peel Ports Chief Operating Officer David Huck said it was “hugely disappointing” for Unite to reject the latest offer, arguing the increase is the highest of any port group in the UK by far.

“Given we have now improved our offer six times and Unite have consistently blocked the involvement of ACAS to help arbitrate, you have to question whether the union really wants to resolve this damaging industrial action or is simply prolonging it for their own ends,” Huck commented.

READ: Felixstowe congestion casts bad omen for upcoming Liverpool strike

Huck added that Unite’s favor of a show-of-hands voting instead of an independent postal vote “is very telling.”

“Our feedback from many, many workers is that they are in favor of accepting but are too reluctant to do so in a mass meeting,” he added.

Unite General Secretary Sharon Graham said: “The Unite team negotiated in good faith with Peel Ports. But the talks ended in farce, with the deal agreed between Unite and senior management being pulled by the board. Strike action by our members and with the full support of Unite will go ahead.

“Peel Ports’ untrustworthy behavior and its attempts to threaten the workforce are only escalating the dispute.”

Since the strikes at the docks began on 19 September, PPG has considered beginning a redundancy consultation process. PPG said the northwest port has seen an increasing decline in the movement of container cargo to its facilities in recent months.

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New Port of Liverpool Strikes Planned for End of Month

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Workers at the Port of Liverpool will stage two more weeks of strikes as the ongoing fallout over pay and job security rolls on.

Unite the union said nearly 600 staff members will walkout from 24 October to 7 November.

The most recent strike was between 11 and 17 October.

The union argued that the latest offer from operator Peel Ports Group (PPG) was a real-terms wage cut due to inflationary pressures.

PPG argues it has offered staff a 10.2 per cent pay rise. The union, however, claimed the offer was around 8.2 per cent and the 10.2 per cent figure was based on the maximum overtime possible worked.

Unite General Secretary Sharon Graham said: “Peel Holdings is hugely profitable and can absolutely afford to pay our members a proper wage increase. It did so at Camel Laird, so why not at Liverpool docks?

“Instead of negotiations to resolve this dispute, the company has chosen to threaten jobs and repeatedly mislead about the deal it has tabled.

“Our members are standing firm, and have their union’s complete support. The company must put forward a pay rise they can accept or this strike continues.”

READ: Export wait times double in South African strike fallout

A recent Peel Ports statement said: “Unite continues to make unrealistic and unsustainable above-inflation pay demands, whilst declining a meeting with the Advisory, Conciliation and Arbitration Service (ACAS).

“We are concerned Unite have no interest in resolving matters through the collective bargaining arrangements we have in place or via an independent ballot, as it continues to push for more strikes.

“Our average the 10.2 per cent basic pay increase offered in talks last week represents an industry leading deal and is 2 per cent above inflation, at the time of the pay anniversary and review in June.

READ: Port disruption triggered by strikes likely to linger through year end

David Huck, Chief Operating Officer at Peel Ports said: “Unite’s decision to call a further two-week strike, against a backdrop of dramatic reductions in container volumes, is entirely self-defeating.

“This pay offer is greater than that of any UK port and we are disappointed they are resorting to the old fashioned, mass meeting show-of-hands, when we believe every single worker deserves the chance to have their say, without undue influence.”

PPG bosses are considering staff redundancy consultations due to an increasing decline at the port in recent months.

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Port of Long Beach Hydrogen Fueling Partnership

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The Port of Long Beach has joined the Alliance for Renewable Clean Hydrogen Energy Systems (ARCHES).

ARCHES is a public-private partnership formed to help capture newly available federal funding to assist in developing a renewable hydrogen market in California.

The partnership was celebrated Thursday during a launch event at the Port Administration Building attended by officials from the port, City of Long Beach, the Governor’s Office of Business and Economic Development, the University of California Office of the President, labor organizations, Renewables 100, and state and local officials.

ARCHES will serve as the lead applicant for California’s bid to win funding for a hydrogen hub under the U.S. Department of Energy’s Regional Clean Hydrogen Hubs (H2Hubs) program.

READ: Port of Long Beach misses August record

Funded by the Bipartisan Infrastructure Law, the H2Hubs program will be one of the largest investments in the history of the Department of Energy.

“Hydrogen power represents a tremendous opportunity — both for our state and for cities like Long Beach. We’re looking forward to California leading the way through investment in sustainable technology,” said Long Beach Mayor Robert Garcia.

“For almost 20 years, the Port of Long Beach has been a leader in sustainable seaport operations,” said Long Beach Harbor Commission President Sharon L. Weissman.

“Partnerships like this have been a key to our success. Green hydrogen is an important fuel for the future of the shipping industry, and as we strive forward on the Port’s goals of zero-emissions cargo-handling by 2030 and trucks by 2035.”

“Establishment of a hydrogen hub in California would support achieving our zero emission goals,” said Port of Long Beach Executive Director Mario Cordero.

“With $8 billion in federal funding available, we want to ensure we have as much leverage as possible to see that our fair share comes to California, and specifically to the ports. This is a step toward this and accelerating the nation’s clean energy transition.”

In order to tackle greenhouse gases and criteria pollutants, the Port of Long Beach has set a goal of all zero-emissions cargo-handling equipment by 2030 and a zero-emissions drayage truck fleet by 2035.

The Port of Long Beach has awarded more than $2.7 million to community-based projects since 2021 as part of its Community Grant Program to reduce its environmental impact.

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Port of Los Angeles Misses Green Target Amid Vessel Backlog

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The Port of Los Angeles has witnessed an increase in emissions from port-related sources in 2021, according to its latest Inventory of Air Emissions.

The port authority explained that 2021 results were significantly impacted by a series of supply chain disruptions – particularly cargo vessels anchored outside the port complex.

The port is anticipating an improvement in cutting down 2022 emissions as stakeholders have been successful in reducing congestion and ships at anchor over the past year.

READ: New York, Savannah bearing brunt of US East Coast congestion

Compared with 2020, emissions of diesel particulate matter (DPM), nitrogen oxides (NOx) and sulphur oxides (SOx) increased 56 per cent, 54 per cent and 145 per cent respectively.

Despite significant year-on-year increases since 2020, strategies implemented under the San Pedro Bay Clean Air Action Plan (CAAP) proved resilient, said the port authority.

Emissions of DPM and SOx continue to meet 2023 CAAP goals, with DPM reductions now 84 per cent below 2005 levels, compared to the 77 per cent CAAP goal.

SOx reductions are currently 95 per cent below 2005 levels, compared to the 93 per cent CAAP goal. NOx emission reductions since 2005 no longer meet the 2023 CAAP goal for NOx, as they are now 44 per cent below 2005 levels, but the port expects positive developments for the 2022 emissions inventory.

The 2021 inventory shows reducing greenhouse gases (GHG) has proven difficult. GHG emissions are up 39 per cent for the year and 23 per cent since 2005.

“The environmental impact of a congested supply chain was evident last year,” said Port of Los Angeles Executive Director Gene Seroka.

“The backlog of ships sitting outside San Pedro Bay was significant. Fortunately, industry stakeholders took steps in the fourth quarter to reduce at-anchorage vessels to ease the impact on residents and workers in the San Pedro Bay and throughout the South Coast Air Basin.

“We’re working hard to address these issues and improve results. We are now providing incentive funding for zero emission trucks, testing a range of new green technologies, and working internationally to decarbonise ocean shipping between Los Angeles and China.

“At the same time, we’ve reduced the backlog of ships waiting to enter the San Pedro Bay by more than 90 per cent and are partnering with stakeholders on additional measures to improve cargo fluidity. An efficient supply chain reduces environmental, community and climate impacts.”

READ: Port of Los Angeles receives $20 million grant to boost freight movement

At the peak of congestion in January 2022, the Marine Exchange reported 109 vessels at anchor or in holding areas. As of today, no container vessels are anchored offshore and eight are slow steaming toward San Pedro Bay, a reduction of more than 90 per cent – as reported by the port.

The Port of Los Angeles reported a slowdown in cargo operations in August after record-breaking cargo volume in 2021 and the first half of 2022.

The port handled an estimated 806,000 TEU in August, approximately 15 per cent lower than the same period a year ago.

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DP World Antwerp Gateway joins Portchain Connect Network

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Portchain has announced DP World Antwerp Gateway will join the Portchain Connect network.

DP World Antwerp Gateway will use Portchain Connect to increase the quality and speed of their berth alignment with customers through digital handshakes and secure data sharing.

Portchain Connect enables DP World Antwerp Gateway to receive real-time schedule and move count updates directly from carrier systems, and enables them to respond and counter propose quickly, to align the vessel schedule with the terminal berth plan.

Portchain Connect streamlines the flow of schedule data to shorten the time to align the berthing window.

The platform allows terminals and carriers to share and receive quality data and reduce delays in information transmission.

Portchain Connect provides users with an easy-to-use overview of all their vessel calls and ensures they can securely transfer berthing information, remove the costs associated with manual non-digitised communication and align on berthing windows to improve schedule reliability.

Thor Thorup, CCO & Co-Founder, commented: “We are excited to work with DP World Antwerp Gateway and help them drive efficiencies in their berth alignment process by facilitating streamlined data exchange.

“We look forward to continuing our collaboration and continuously improving the platform based on user feedback”

Portchain is the leading provider of berth alignment solutions for container terminals and carriers. Portchain works with leading container carriers and terminal operators to create sustainable win-win solutions to improve operational efficiency for container shipping.

Founded in 2017 and based in Copenhagen, Portchain works on a global scale serving container terminals and carriers across Europe, Asia, North America, South America and Africa.

In 2021 Portchain won a contract from the Tanger Alliance, Morocco, a greenfield terminal that went live on Jan 1 2021, to implement its Berth Optimization Engine.

DP World Antwerp operates the Antwerp Gateway terminal on the left bank of the Scheldt River, a joint-venture between DP World Antwerp Holding (60 per cent), COSCO (20 per cent), Terminal Link (10 per cent) and Duisport Group (10 per cent).

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Port of Melbourne Welcomes Largest Ship Ever to Call at Victoria Container Terminal

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The CMA CGM Group has deployed the largest vessel to ever call at the Port of Melbourne (PoMC).

With a nominal capacity of 10,926 TEU, the CMA CGM Estelle berthed at Victoria International Container Terminal (VICT) in Webb Dock.

The ship operates on the North Europe Mediterranean Oceania (NEMO) service.

The previous record was held by the CMA CGM Ural, with a handling capacity of 10,622 TEU.

“VICT would like to congratulate the CMA CGM Group on their continued drive for efficiencies through deploying larger vessels with clear environmental benefits in the Oceania trades to support the demand of the economy and utilise the ability to increase economies of scale,” said Tim Vancampen, VICT CEO.

“In partnership with PoMC in the Webb Dock Development, we are committed to supporting the Victorian shipping industry with our $235 million investment that will increase our ability to accommodate increasing vessel sizes.”

READ: CMA CGM launches new US-South America new service

“It’s really exciting to see this vessel arrive at Port of Melbourne,” added Saul Cannon, PoMC CEO.

“We are investing across the port to ensure we can accommodate the larger vessels that are calling at Melbourne.”

“The global shipping fleet is deploying larger vessels. Port of Melbourne is well positioned to meet global shipping trends to serve the growing freight needs of Victoria and south-eastern Australia now and into the future.”

The Port of Melbourne reported strong volumes in August amid peak season.

August 2022 saw total container throughput (full and empty) up 9.5 per cent over August 2021 with a total of 284,487 TEU.

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Liverpool Port Bosses Mull Layoffs Following Strike Action

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A redundancy consultation process is soon to begin at the Port of Liverpool following continued strike action at the UK port.

Operator Peel Ports Group (PPG) said the northwest port has seen an increasing decline in the movement of container cargo to its facilities in recent months.

Reported by the BBC, PPG said decline in vessel charter rates and container throughput meant that redundancies are being considered.

“The Port of Liverpool is to restructure its containers division and will next week start a redundancy consultation process, following a marked deterioration in the volume of containers handled by the port,” a representative for the firm said.

“We are exploring a number of different options to try and protect as many jobs as possible, including redeploying staff in other areas of the business which are less exposed to the economic crisis.

“Whilst this is an extremely regrettable situation, as a responsible employer, we need to restructure now in order to minimise the potential greater impact the downturn in container business will have on jobs, further down the line.”

Unite the union members committed to a two-week staff walkout on 19 September, rocking local supply chains.

Nearly 600 Liverpool port workers will take seven days of fresh strike action between 11 and 17 October, Unite the union announced in September.

The ongoing dispute regards rejected pay rise offers from PPG to the workers.

Mersey Docks and Harbour Company (MDHC)’s latest pay offer of around 8.3 per cent was rejected as, according to the union, with the current rate of inflation at 12.3 per cent represents a pay cut.

The dispute is also taking place over MDHC’s failure to honour its 2021 pay agreement promising a pay review and failing to improve shift rotas.

MDHC is part of Peel Ports and is owned by the Peel Group. Some of the Liverpool port dock masters are employed under Peel Ports Investments.

Container volumes through UK ports fell by 17 per cent during the last financial crisis and this took several years to recover.

PPG said it is widely expected the current economic challenges may lead to a much higher fall in disposable income over the coming 12 to 24 months.

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Maersk, JCB Sign Logistics Agreement

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Maersk has signed a new multi-year partnership with construction and agricultural equipment manufacturer JCB (one of the largest privately-owned companies in the UK) to provide logistics services across its entire supply chain.

Under the agreement, Maersk will become the new global Lead Logistics Provider (LLP) for JCB offering end-to-end supply chain management services and management of its appointed third-party warehousing provider.

Maersk will establish a global control tower in the United Kingdom, and three regional control towers in the United States, China and India to provide multimodal cargo services and oversee JCB’s end-to-end supply chain.

The carrier said it will also deliver consolidation and customs services for JCB across various locations and manage its UK warehouse provider on a LLP basis, Unipart Logistics.

“JCB recognises the great value that our integrator strategy offers for their supply chains,” said Gary Jeffreys, Maersk’s Area Managing Director UK & Ireland.

“JCB and Maersk are an excellent strategic fit. This partnership will deliver a more agile and sustainable global supply chain for JCB.

“Maersk’s experience and the collective strengths of both companies make it a great opportunity for us to deliver this vision.”

Maersk currently offers integrated logistics solutions in more than 550 warehouses with a total global space of around 9.5 million square metres.

Last month, Maersk signed new leases for three new low-emissions distribution centres in Doncaster and Dublin.

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South Africa Transport Unions Threaten Strike Action

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South Africa’s national transport unions have threatened strike action which could begin later this week.

The United National Transport Union (UNTU) served a 48 Hour Notice on nationalized infrastructure operator, Transnet, indicating the intention to embark on Protected Strike/Protected Industrial Action from 6 October 2022.

The dispute comes after months of salary negotiation, to which UNTU argues Transnet has yet to make a reasonable offer for its employees.

Rail and port facilities under Transnet import and export bulk and container goods in and out of the country, with staff walkouts potentially crippling supply chains in the nation.

After UNTU threatened to give notice of the industrial action as per the circular letter that was issued on 28 September, Transnet provided proposal on 3 Oct 2022, which included a 1.5 per cent increase and backpay from 1 April to 30 September, due to be paid in full by the end of March 2023.

READ: US railroads reach last-minute deal to avert strike

UNTU has rejected the offer, adding in a statement: “It is an insult to our members who have put everything on the line to help get this company back on track. Our members, and the Transnet employees at large, are expected to bear the brunt of years of historic mismanagement and corruption that occurred during state capture.”

Separately, the South African Transport and Allied Workers Union has announced it will also strike from 10 October, after rejecting the same offer.

On 4 October, Transnet wrote that it has applied to the national Commission for Conciliation Mediation and Arbitration (CCMA) to convene conciliation discussions over the current wave negotiations.

“Transnet has consistently made the point that its wage bill currently makes up over 66 per cent of monthly operating costs. This is not sustainable, particularly given the current operational and financial performance,” Transnet wrote.

“Transnet has urged unions, and Transnet workers, to accept its offer as the best possible deal that can be made right now.”

In September staff at the Port of Felixstowe have staged their second walkout in a handful of weeks, compounding congestion problems in an already struggling UK supply chain.

Also in the UK, senior officials at the Port of Liverpool have voted to take part in a new strike action commencing mid-October.

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Guangzhou Splashes out $1 billion in new 500,000 TEU Berth at Nansha Port

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The Guangzhou Port Group (GPG) has invested in a new berth in the Nansha port area to create an an annual additional capacity of half a million TEU.

The estimated investment stands at 7.472 billion yuan ($1 billion) and is still subject to approval by the company’s general meeting of shareholders.

The new berth will be able to accommodate six inland container barges at a time and process 15.5 million tonnes of bulk and general cargo per year.

The berth will add to the four berths that were opened in November 2021 and June 2022.

The company made the announcement in a filing submitted to the Shanghai Stock Exchange.

READ: China ports volumes trend downwards as lockdowns make impact

The aim of the project is to bolster the economic and social development of the hinterland, speed up capacity building, improve the passing capacity of general and container terminals, and accelerate the development of the main port business.

The company has set up a wholly owned subsidiary with paid-up capital of around $210 million to invest in the construction and operation of the project.

The construction period of the project is expected to be three years.

In August, the Port of Nansha began operations of its fully automated terminal, the first of its kind in the Guangdong–Hong Kong–Macau Greater Bay Area.

According to GPG, this is part of the fourth phase of the modernisation project at the Port of Nansha, combining multimodal services related to sea, river, and railway transportation.