ICTSI under pressure in Oregon

News 30 Jan 2015 by WCN Editorial

Terminal operator appeals to ILWU to end slowdowns that have brought productivity down to 13.2 moves per hour.

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The situation at Terminal 6 in Portland Oregon where the International Longshore and Warehouse Union (ILWU) has been slow timing ICTSI for months now shows no sign of improving.

ICTSI has issued the following statement:

"The ILWU has escalated its efforts against ICTSI Oregon, Inc. as of late, far beyond what other West Coast ports are experiencing. During the busy 2014 holiday season, ILWU engaged in approximately 36 work stoppages and slowdowns of various types and for varying durations. Similar efforts, along with intentional labor shortages, have continued into the first month of 2015. For example, yesterday, the ILWU ordered a 12-hour work stoppage commencing at 7:00 a.m. Today, ILWU members worked during the morning, but walked off the job without notice at 1:15 p.m. Work stoppages like this cause serious hardship to truckers, shippers, and the general public.

"Productivity at Terminal 6 continues to fall well below acceptable historical levels. In May 2012, prior to the labor dispute which arose in June 2012, ILWU labor was producing approximately 24.8 moves per hour. However, in the last quarter of 2014, ILWU labor was producing at only approximately 13.2 moves per hour—a roughly 47% reduction. This level of production is far below industry as well as Terminal 6 standards.

"Terminal 6 is the only international shipping container terminal in Oregon. As such, it is a powerful economic engine to the region that offers significant benefits to thousands of businesses, workers and consumers. For this reason, the ILWU’s deliberate and continuous work delays since June 2012 threaten the terminal’s future viability as a critical hub of regional economic activity. For the sake of the state’s long-term economic well-being, ICTSI Oregon, Inc. strongly encourages the ILWU to end its work stoppages, slowdowns and labor shortages, and increase port productivity to historical levels".

As previously reported the Port of Portland Commission is supporting carriers with what is effectively a subsidy of up to $50 per container to keep their business. This is costing the port almost the entire lease revenue it receives from ICTSI, which us unsustainable in the long term.