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| Subject: | SOUTH CAROLINA DAILY PORT UPDATE - MAERSK PULLS OUT OF CHARLESTON | | Date: | Friday, December 19, 2008 | | Priority: | Normal | | Notice: |
URGENT INFORMATION - NONE
PORT LIMITS/INFORMATION
------------------------
Maximum Depths - (Fresh)
Harbor Entrance - 47.0 ft
Main Channel - 45.0 ft
BERTH LIMITS/INFORMATION:
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Current maximum drafts allowed at berths:
Amerada Hess - Max draft of 40'00
Kinder Morgan - berth 1 - 40'00
Kinder Morgan - berth 2 - 40'00
Kinder Morgan - berth 3 - TBA
Kinder Morgan - berth 4 - Max draft 39'00, tide needed for anything
deeper than 36'00
BP - Max draft 32'6" Low water / Salt
Wando Terminal - Max draft 46'00 - Max BM 187'00
North Charleston Terminal - Max 42'00 - Max BM 187'00
CST - Max draft 47'00 - Max BM 187'00
Nucor - Max draft 25'00 (movements daylight & tidal restricted), Max LOA
450', Max Beam 52'
Per pilots - restrictions for Tanker movements:
Drafts of 36'00 or less may transit at anytime Drafts of 36'01 to 40'00 -
window: Start in 1 Hour before low water until 2 hours before high water
Drafts of 40'01 to 41'00 - window: start in 2 hours after low water until
2 hours before high water
Drafts of 41'01 to 42'00 - window: start in 3 hours after low water until
3 hours before high water
VESSEL TRAFFIC:
---------------------------------------------
HESS - EAST POINT - ETA 1845/19TH
BP - TUG INTEGRITY & 650-4 - ETA 2030/19TH
=============================================
FEDERAL, STATE & LOCAL FILING REQUIREMENTS:
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96 Hours - advance notice of arrival required by USCG
48 Hours - advance receipt of crew list by Immigration for any vessel
arriving from a foreign port, or arriving coast wise with detained crew.
24 Hours (minimum) - Foreign cargo must have manifest submitted to
Customs & Border Patrol AMS. Bond must be filed for Foreign flag vessels
or U.S.
flag arriving with foreign cargo aboard.
24 Hours - advance notice to Pilots
24 Hours - advance fax of crew list and approved visitors required by
Terminal.
PRIOR TO ARRIVAL - as of 11/15 - Mandatory Right Whale reporting by all
vessels - for information - www.nmfs.noaa/pr/shipstrike.com
72 Hours - post port call, the Port Authority requires bill of lading
figures for all bulk cargo.
Port Security - All persons doing business within Port Authority property
must have security pass from SCPA. All persons wanting unescorted access
to any vessel must have a valid TWIC.
=========================================
NEWS ARTICLES:
By Molly Parker
mparker@scbiznews.com
Maersk Line, the S.C. State Ports Authority's largest shipping customer,
just announced that it will leave the Port of Charleston when its
contract expires at the end of 2010.
The Danish company said it will begin ramping down its business with
Charleston in early 2009. Maersk makes more than 400 ship calls here
every year and represents about 20% of the port's container business. Its
decision to leave is likely to have a profound impact on the local
maritime industry and related businesses across the state, including
trucking companies and commercial developers.
Its South Atlantic Express service, which calls on Charleston twice a
week, will be moved to other nearby ports starting in January. That means
the Port of Charleston, which has already been hammered by declining
world trade, will lose 104 ship calls next year.
MaerskMaersk has a license agreement with the SPA to operate its own
dedicated terminal, largely with labor supplied by the International
Longshoremen's Association. Earlier this year, the company said it would
take the SPA up on its offer to move to a common-user gate that is
operated by SPA employees, which would be a less-expensive alternative
for Maersk.
But such a move requires the permission of the three local ILA chapters
representing longshoremen, checkers and clerks. They collectively voted
against that move last week.
In its statement, Maersk said it could no longer bear the cost
disadvantage between the Port of Charleston and its competitors operating
out of the common-user gate.
"It would be unfair to our shareholders, customers and our employees to
continue to operate in this environment," Maersk spokesman Dana Magliola
said.
ILA Local 1422 President Ken Riley did not immediately return a phone
call this afternoon. But he said earlier that Maersk's request would
be "in violation of an international contract" between labor and shipping
companies.
"This is national law," he said. "It would actually jeopardize the
relationships between Maersk and the ILA up and down the coast."
He accused the SPA of trying to squeeze out labor and said the quasi-
state agency could offer to lower the company's costs in other ways.
SPA spokesman Byron Miller said port executives would issue a comment on
the situation later today.
For its part, Maersk blamed the ILA's unwillingness to cooperate.
The SPA offered a "workable solution," Magliola said, but "the local ILA
refused to consent, and so we are forced to move."
Reach Molly Parker at 843-849-3144.
==================================================
Maersk shipping out
Blames decision on ILA'S rejection of cost-saving arrangement
By Allyson Bird (Contact)
The Post and Courier
Friday, December 19, 2008
Maersk Line, in a potentially staggering blow for the Port of Charleston
and the South Carolina economy, followed through Thursday on a threat to
pull all of its business from the local waterfront.
The Denmark-based company, which is the port's biggest customer, said it
would phase out all operations in Charleston over the next two years
because it was unable to reach a cost-saving arrangement.
Maersk containers soon will move through Port of Charleston terminals for
the last time. The huge shipping line will phase out all operations here
over the next two years after being unable to come to terms with port
officials on a cost-saving deal.
Wade Spees
The Post and Courier
Maersk containers soon will move through Port of Charleston terminals for
the last time. The huge shipping line will phase out all operations here
over the next two years after being unable to come to terms with port
officials on a cost-saving deal.
A quarter of the service reductions will come in early 2009, according to
Maersk.
The steamship line's impact on the port is huge. It accounts for 20
percent of Charleston's container business in a time when container
volume is down 4 percent for the fiscal year.
In a written statement, Maersk spokesman Dana Magliola blamed the
decision on the International Longshoremen's Association, which rejected
the company's proposal to move to the so-called common area of the port
and allow State Ports Authority workers to perform jobs that otherwise
fall to union labor.
"The South Carolina State Ports Authority offered us a workable solution
that involved a move into the common yard, but we need the consent of the
local ILA to accomplish the move," Magliola said. "The ILA refused to
consent, and so we are forced to move. By moving to other regional ports,
we will once again be able to compete on a level playing field with other
ocean carriers while continuing to provide excellent service to our
customers."
Magliola declined to name where Maersk would reroute its ships.
Official statement
Read Maersk's official statement on its impending departure
Ken Riley, president of the ILA Local 1422, could not be reached for
comment Thursday.
Riley has previously said that letting Maersk out of its contract with
the ILA would cut dozens of jobs at a time when man-hours are down 10
percent. He also has said it would set a dangerous national precedent.
John Alvanos, president of Local 1771 Clerks and Checkers, said the
unions and Maersk have worked cooperatively for three decades. "This
issue is a non-ILA issue," Alvanos said. "We're being used as a scapegoat
for a bad contract Maersk negotiated between the State Ports Authority
and themselves."
Reflecting on Maersk pulling out of Charleston by 2010, James Pinckney
Jr. said, 'That's a long time (for them) to think about leaving the best
longshoremen in the country.' He was in the International Longshoremen's
union hall on Morrison Drive waiting for the night's work assignments on
Thursday.
Wade Spees
The Post and Courier
Reflecting on Maersk pulling out of Charleston by 2010, James Pinckney
Jr. said, 'That's a long time (for them) to think about leaving the best
longshoremen in the country.' He was in the International Longshoremen's
union hall on Morrison Drive waiting for the night's work assignments on
Thursday.
Charleston-area resident Ron Brinson, a retired chief executive at the
Port of New Orleans and a frequent commentator on local maritime issues,
said he was surprised that Maersk publicly pinned all the blame on the
ILA.
"Steamship lines posture all the time, and port managers have the skill
sets to deal with that. This time it has to be taken seriously because
the overall economy has rather suddenly delivered a blow to the ocean-
carrying segment of this industry," Brinson said.
Gov. Mark Sanford's office reacted to the news of the shipping line's
impending departure with talk of changing the SPA's structure. Terminals
currently are managed solely by the ports authority, which for years has
bucked industry trends by resisting efforts to lease its terminals to
private industry.
"We can either start to heavily subsidize the port operation like they do
in Savannah, or we can go toward a landlord-tenant-style partnership,"
said Sanford spokesman Joel Sawyer. "What we can't do is stay in the
middle."
While Maersk currently accounts for 20 percent of the port's container
business, it claimed nearly a quarter just months ago and more than 30
percent in years past. That sharp decline in volume helped bring the
world's largest container carrier to this decision.
Previous story
Union members reject Maersk's cost-cutting request, published 12/13/08
Throughout this year, Maersk has faced "shortfall" fees for not meeting
the volume it agreed upon in its contract with the SPA, which runs
through Dec. 31, 2010. The SPA proposed two solutions: reducing Maersk's
space and taking back some of the equipment it purchased for the carrier,
or move to the common-use area.
Maersk publicly announced its choice to pursue the second option in
October. After two tense months, hundreds of members of the three local
maritime unions voted unanimously last week to reject that proposal.
Maersk sent a letter to the SPA Thursday afternoon informing the maritime
agency it would return all its terminal space by the end of its contract.
The company will move one line service from Charleston — the South
Atlantic Express — in early 2009. That service alone represents 25
percent of Maersk's local port calls, or two ships per week.
Bernard S. Groseclose, SPA president and CEO, said the SPA asked the
company if it could provide any further assistance but that Maersk wanted
the ILA to bend. He said SPA representatives have been in contact with
Maersk almost daily since the situation intensified, but that Thursday's
announcement came as a surprise.
"I hope that the service is not discontinued immediately, that they will
have some presence here in the next few years — a sizeable presence," he
said. "My hope is people would understand the overall impact and react to
that."
Robert New, owner of Charleston Port Services, said rumors of Maersk's
decision to pull out had been circulating on the waterfront for several
weeks.
"The ripple effect is truly dramatic," he said. "It affects harbor pilots
and tugs and line handlers and warehouse people and chandlers. It's a
huge economic loss to the entire region all the way down to restaurant
owners and car dealers. People may not realize it, but they're going feel
it in months to come."
He said South Carolina's loss would likely be Virginia or Georgia's gain.
College of Charleston economist Frank Hefner said the shipping line's
departure, especially one as large as Maersk, would likely delay any
economic recovery in the Charleston area.
It could even exacerbate existing problems. "Unfortunately, this may not
be the bottom of the market," Hefner said. "That's really a bad sign for
us."
Eyeing potential container growth that's expected to follow the
completion of a new terminal on the former Navy base and the widening of
the Panama Canal, warehouse developers have unveiled plans to build
additional space up and down the Interstate 26 corridor.
In the Jedburg area alone, several investment groups are proposing to
develop more than 12 million square feet of warehouse space during the
next decade.
And a Dubai investment group recently detailed its $600 million master
plan to build an industrial hub with more than 4 million square feet of
warehouse space in Orangeburg County, with most cargo expected to pass
through the Port of Charleston.
Michael White, an El Paso, Texas-based logistics consultant who is
familiar with Charleston's port operations, said those plans were based
on container-traffic growth projections.
"If the port cannot replace Maersk with an equivalent number of
containers through another shipping company, then I think we'd be in real
trouble with developers canceling their previous plans because their
plans were based on a faulty set of assumptions," White said.
Prentiss Findlay, John McDermott, Katy Stech and Warren Wise contributed
to this report. Reach Allyson Bird at abird@postandcourier.com or 937-
5594.
==================================================
CURRENT ISSUES:
FUTURE/ONGOING ISSUES:
01/07 - 0815 - Maritime Association Board Meeting
01/08 - 1700 - SAVANNAH PROPELLOR CLUB DINNER
01/13 - 1145 - CWIT LUNCHEON MEETING
01/13 - 1700 - Commissioners of Pilots meeting
01/16 - 1000 - SCSPA Board Meeting
01/22 - 0815 - Maritime Association NAV OPS Meeting
01/25-27 - GA FOREIGN TRADE CONVENTION
02/06 - Maritime Association Banquet
2014 - ETA FOR NEW CHARLESTON PORT TERMINAL TO BE COMPLETED
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HURRICANE ALERT - 5 - OUT OF SEASON
SEAPORT SECURITY ALERT CURRENTLY AT YELLOW/ELEVEATED - MARSEC 1
============================================
Tides for Charleston (Customhouse Wharf) starting with October 6, 2008.
Day High Tide Height Sunrise Moon Time % Moon
/Low Time Feet Sunset Visible
F 19 High 1:14 AM 5.2 7:17 AM Rise 12:07 AM 55
19 Low 7:17 AM 0.4 5:17 PM Set 12:13 PM
19 High 1:25 PM 5.1
19 Low 7:45 PM 0.2
Sa 20 High 2:13 AM 5.2 7:18 AM Rise 1:07 AM 45
20 Low 8:20 AM 0.6 5:17 PM Set 12:41 PM
20 High 2:19 PM 4.8
20 Low 8:38 PM 0.3
Su 21 High 3:10 AM 5.3 7:18 AM Rise 2:06 AM 35
21 Low 9:21 AM 0.7 5:18 PM Set 1:10 PM
21 High 3:13 PM 4.6
21 Low 9:30 PM 0.3
M 22 High 4:03 AM 5.4 7:19 AM Rise 3:04 AM 26
22 Low 10:17 AM 0.6 5:18 PM Set 1:42 PM
22 High 4:04 PM 4.5
22 Low 10:20 PM 0.3
Tu 23 High 4:53 AM 5.5 7:19 AM Rise 4:03 AM 18
23 Low 11:09 AM 0.5 5:19 PM Set 2:17 PM
23 High 4:54 PM 4.5
23 Low 11:07 PM 0.3
W 24 High 5:40 AM 5.6 7:20 AM Rise 5:00 AM 11
24 Low 11:56 AM 0.4 5:20 PM Set 2:58 PM
24 High 5:41 PM 4.5
24 Low 11:51 PM 0.2
Th 25 High 6:23 AM 5.7 7:20 AM Rise 5:56 AM 6
25 Low 12:40 PM 0.3 5:20 PM Set 3:44 PM
25 High 6:25 PM 4.6
F 26 Low 12:33 AM 0.1 7:21 AM Rise 6:49 AM 2
26 High 7:05 AM 5.7 5:21 PM Set 4:35 PM
26 Low 1:21 PM 0.3
26 High 7:07 PM 4.6
Sa 27 Low 1:13 AM 0.1 7:21 AM Rise 7:36 AM 0
27 High 7:45 AM 5.7 5:21 PM Set 5:30 PM
27 Low 2:00 PM 0.3
27 High 7:47 PM 4.6
Su 28 Low 1:50 AM 0.1 7:21 AM Rise 8:18 AM 0
28 High 8:23 AM 5.7 5:22 PM Set 6:27 PM
28 Low 2:37 PM 0.3
28 High 8:25 PM 4.6
M 29 Low 2:27 AM 0.1 7:21 AM Rise 8:55 AM 1
29 High 8:59 AM 5.6 5:23 PM Set 7:25 PM
29 Low 3:13 PM 0.3
29 High 9:01 PM 4.6
Tu 30 Low 3:03 AM 0.2 7:22 AM Rise 9:28 AM 5
30 High 9:32 AM 5.5 5:23 PM Set 8:23 PM
30 Low 3:49 PM 0.3
30 High 9:36 PM 4.6
W 31 Low 3:41 AM 0.3 7:22 AM Rise 9:57 AM 10
31 High 10:05 AM 5.3 5:24 PM Set 9:20 PM
31 Low 4:25 PM 0.3
31 High 10:13 PM 4.6
Th 1 Low 4:20 AM 0.4 7:22 AM Rise 10:24 AM 16
1 High 10:36 AM 5.1 5:25 PM Set 10:18 PM
1 Low 5:00 PM 0.3
1 High 10:52 PM 4.7
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MARINE WEATHER FORECAST:
THIS AFTERNOON
SW WINDS 15 TO 20 KT. SEAS 2 TO 4 FT.
TONIGHT
SW WINDS 15 TO 20 KT...DIMINISHING TO 10 TO 15 KT AFTER
MIDNIGHT. SEAS 2 TO 4 FT.
SAT
SW WINDS 10 TO 15 KT. SEAS 2 TO 4 FT... SUBSIDING TO 2 TO 3
FT IN THE AFTERNOON.
SAT NIGHT
SW WINDS 10 TO 15 KT...INCREASING TO 15 TO 20 KT AFTER
MIDNIGHT. SEAS 2 TO 3 FT...BUILDING TO 3 TO 4 FT AFTER MIDNIGHT.
SUN
W WINDS 15 TO 20 KT WITH GUSTS UP TO 25 KT. SEAS 4 TO 5 FT. A
SLIGHT CHANCE OF SHOWERS IN THE MORNING...THEN A CHANCE OF SHOWERS
IN THE AFTERNOON.
SUN NIGHT
W WINDS 15 TO 20 KT...BECOMING NW 20 TO 25 KT AFTER
MIDNIGHT. SEAS 3 TO 4 FT.
MON
N WINDS 15 TO 20 KT...DIMINISHING TO 10 TO 15 KT. SEAS 2 TO
3 FT.
TUE
NE WINDS 10 TO 15 KT...BECOMING SE. SEAS 3 TO 4 FT. A SLIGHT
CHANCE OF SHOWERS.
| | Notice posted on Friday, December 19, 2008 | |
Disclaimer
For quality assurance purposes please note well that while the above information is regularly vetted for accuracy it is not intended to replace the local knowledge or expertise pertaining to port conditions of our marine operations personnel. Port précis should always be verified by contacting the corresponding marine department of a particular location for the most up-to-date information.
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