Customer Advisory - ILWU/PMA negotiations and APM Terminals Pier 400 operations

(Florham Park, NJ)…We continue to closely monitor negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA), which began May 10th. While the contract for the ILWU’s 22,000 workers employed at 29 U.S. West Coast ports expired July 1st, the two parties have jointly announced that they are committed to negotiating a new contract without disruption and that cargo would continue to move through the ports.

At this time, ILWU/PMA negotiations are ongoing in San Francisco and at local levels on operational items in the contract. To date, the parties have reportedly reached a tentative agreement on health benefits. On September 16th a tentative agreement was reached with ILWU Local 26 without incident. Local 26 provides warehouse security at the Los Angeles and Long Beach container terminals.

Recent news reports highlighted union-related activities at our APM Terminals on Pier 400 in the Port of Los Angeles. On September 18th ILWU Local 13 resumed working at Pier 400’s automated section of the facility after a 26-day hiatus. The ILWU had cited concerns with ship-to-shore crane working conditions in the automated section of the yard. During the hiatus we implemented continuity planning to ensure the continued flow of cargo without delay. All concerns have since been addressed and normal operations have been restored. Notably, the cranes have been in operation for two years at Pier 400 without incident and have a perfect safety record.

We look forward to the successful conclusion of the negotiations for all parties and the stability the renewed contracts will provide for a dependable and vibrant supply chain.

Please contact your Hamburg Süd representative with any questions you may have.