Cordero Pledges West Coast Congestion Relief During Nomination Hearing
The Federal Maritime Commission is working to mitigate damage caused by the recent months of West Coast port congestion, and it's critical that labor unions engage in negotiations as early as possible to avert a similar contract dispute in the future, said FMC Commissioner Mario Cordero in a Senate Commerce Committee nomination hearing on May 6. The Pacific Maritime Association and the International Longshore and Warehouse Union struck a tentative deal in February to continue port operations at full capacity (see 1502230002). Cordero also called for infrastructure improvements and funding boosts for agencies that handle the import and export of cargo.
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The committee, led by Chairman John Thune, R-S.D., has yet to set a date for voting on the nomination, though it is likely to happen "soon," said a committee aide. If confirmed by the full Senate, Cordero's term would expire in 2019 (see 1504290050). The committee also heard testimony from Daniel Elliott, who is nominated for another term as chairman of the Surface Transportation Board.
Cordero and the FMC should force ocean carriers to waive per diem charges put on shippers during the recent congestion, said Agriculture Transportation Coalition Executive Director Peter Friedmann in a May 5 statement, identifying that period as roughly between the outset of November 2014 to April 15, 2015. “For some exporters and importers, the per diem fees are totaling hundreds of thousands and in some cases millions of dollars,” said Friedmann. “These are costs that are being imposed following nine months of lost sales, cargo damage, lost customers and diverting cargo to air and to alternative gateway ports.” The National Customs Brokers & Forwarders Association of America joined other industry groups in calling for relief from those per diem charges in a late April letter to Cordero (see 1504280010).
In the nomination hearing, Cordero also said there will be significant cargo diversion from West Coast ports after Panama Canal expansion is completed. The expansion is scheduled for completion at the end of 2015 (see 1411140009). “The American shippers are looking to some real options and choices,” said Cordero. “There’s going to be more containers coming, the question is where those containers will go to.”