Transportation

On August 31, 2016, Hanjin Shipping Co. filed for bankruptcy protection in South Korea. Two days later, Hanjin filed in U.S. Bankruptcy Court for the District of New Jersey for Chapter 15, which provides a mechanism in the U.S. for resolving problems that arise in cross-border bankruptcies. Three out of four U.S. shippers reportedly have…

The current marine container logjams at terminals and containership backups on the West Coast have caused grave concern for all stakeholders in the supply chain.  In recent weeks there have been anywhere from 16 to 35 vessels laying-to awaiting berth availability at LA/Long Beach and other West Coast Ports.  The matter has escalated to the President’s desk with Labor Secretary Tom Perez and Commerce Secretary Penny Prizker weighing in on the labor union/maritime employers side of the problem. The causal factors for this situation that began last July appear to stem from stalled negotiations between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) resulting in allegations of slowdowns and lockouts.

Click here for “West Coast Ocean Cargo Congestion: Facts And Remedies,” Carlos Rodriguez’s original article.

The below surcharges were to have been implemented effective November 17, 2014 by ocean carriers for import/export traffic through the West Coast ports:

There was a loud outburst by shippers and shipper groups, and the Federal Maritime Commission, as did we, questioned the legality of applying the surcharges to cargo already in ocean carriers’ systems either at origin, in route, or at West coast destinations.