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HK Shippers Council expects west coast congestion to drag on

CONGESTION and delays to vessel schedules may not be resolved quickly at US west coast port warns the Hong Kong Shippers Council (HKSC), which notes that attempts to shift sailings to ports in Mexico and Canada have jammed up those ports as well.

HKSC said there are a number of factors contributing to the current congestion, and not least the failure of on-going negotiations to reach agreement on a new contract between the International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association to replace the contract that expired by July.

A breakdown in the talks prompted unionised workers at the ports of Los Angeles and Long Beach to launch go-slows.

While labour issues might have triggered the current congestion, there are other contributing factors, the council statement said.

These factors include the "use of bigger containerships causing deterioration in crane productivity and quayside performance, insufficient investment in inter-modal facilities especially freight railroads, shipping lines' abandoning their chassis pools, environmental issues that hinder port development", said a statement from the council.

It warned that these factors may not disappear quickly even if the labour issue is resolved.

The council is alerting shippers that the delay in sea shipments has already led to a serious shortage of air freight capacity. This has lead to higher air freight rates and could lead to "serious" delays as well.

Shippers are being advised to plan much further ahead and avoid urgent shipments.