"A man would do nothing, if he waited until he could do it so well that no one would find fault with what he has done." ~ Cardinal John Henry Newman "What you have to do and the way you have to do it is incredibly simple. Whether you are willing to do it is another matter." ~ Peter F. Drucker, Social Ecologist "Nothing will ever be attempted, if all possible objections must be first overcome." ~ Dr. Samuel Johnson, Author, Linguist and Lexicographer

1. PRESIDENT BARACK OBAMA & THE FEDERAL
MARITIME COMMISSION – PORT CONGESTION
PORT OF SEATTLE – PORT OF TACOMA – PORTS USA
Mr. Theodore J. Frick, CEO, Port of Seattle and Mr. John Wolfe, CEO, Port of
Tacoma by letter dated November 21, 2014 have jointly requested President
Barack Obama “reconsider his [your] decision not to assign mediation to help the
Pacific Maritime Association (PMA) and the International Longshore and
Warehouse Union (ILWU) resolve pending contract negotiations. We believe
that mediation has become a critical and necessary tool because the parties have
been unsuccessful in concluding discussions after seven months. Lack of
resolution, we believe, has negatively affected the efficient flow of commerce
through ports along the West Coast for several weeks now.”
[Emphasis and Clarification Supplied]
Whether President Obama has authority to act, being there no impasse, or
whether the request is properly and directed to the National Labor Relations
Board, the parties appear to jointly and mutually agree that unfair labor practices
have been committed by both sides.
Noted, President George W. Bush invoked The Taft-Hartley Act in connection
with the employer lockout of the International Longshore and Warehouse Union
during negotiations with West Coast shipping and stevedoring companies in
2001. Whether the equivalent labor situation exists at the Port of Seattle and the
Port of Tacoma would determine whether Presidential intervention is mandated.
The Federal Maritime Commission (FMC) was established to provide regulatory
oversight and enforcement of shipping laws to foster a fair, efficient, and reliable
international ocean transportation system for the benefit of U.S. exporters,
importers, and the U.S. consumer. http://www.fmc.gov/about/history.aspx
The FMC Chairman and several Commissioners have visited the West Coast,
Mid-Atlantic and Northeast Ports to investigate port congestion.
FMC Commissioner Rebecca F. Dye, Remarks to the Propeller Club of the United
States, Port of Washington, D.C., June 25, 2014: http://www.fmc.gov/dye-propellerclub-2014/

2. “The Federal Maritime Commission provides a forum
for members of the shipping public to obtain relief
from ocean shipping practices or disputes that impact
the flow of international commerce or otherwise
cause economic harm. This is especially appropriate
when a solution to a complex transportation problem
does not lie neatly within an existing regulatory
framework. The Commission’s breadth of
responsibility in three areas gives the global
transportation perspective to facilitate market-based
solutions to the problems in the international supply
chain.
First, the FMC’s responsibility to enforce competition
among ocean carriers operating with restricted
antitrust immunity in U.S. trade lanes gives the
Commission an appreciation of the market realities
that drive supply and demand in international ocean
shipping.
Second, the Commission’s similar responsibilities
regarding more than 150 port, marine terminal and
chassis pooling agreements gives us an
understanding of the challenges facing ports and
terminals in the United States.
Third, the Commission’s licensing and financial
responsibility system for nearly 6000 ocean
transportation intermediaries provides another
dimension to our understanding of the global supply
chain.
My experience in 2010 as the Investigating Officer for
Fact-Finding Investigation No. 26, Vessel Capacity
and Equipment Availability in the United States
Export and Import Liner Trades, strengthened my
confidence in conflict resolution with market
participants engaged in confidential collaboration.

3. Federal regulatory or law enforcement procedures are
not generally conducive to a successful resolution of
problems in dynamic and complex supply chain
circumstances. Last week, the Commission received
testimony from representatives of the American
Trucking Associations and the Harbor Trucking
Association of Los Angeles about the increasing
problem of congestion in major U.S. ports.
Long lines at the gates and long wait times in the
terminals have had a devastating impact on the
Nation’s harbor truck drivers, ocean transportation
intermediaries, and beneficial cargo owners, who are
not receiving timely deliveries. The ATA and the
Harbor Trucking Association requested the
Commission’s assistance in facilitating a solution to
the problem of port congestion.
I look forward to the Commission’s involvement with
interested stakeholders to help reduce port
congestion.”
FMC Commissioner William P. Doyle, Briefing to the Federal Maritime
Commission, November 13, 2014: http://www.fmc.gov/news/default.aspx?ArticleId=2080
“The port congestion forums hosted by the FMC are a
unique opportunity for stakeholders to gather in one
room, share their view, be listened to, and to respond
to the concerns of other affected sectors. I thank the
participants at the Mid-Atlantic and Northeast Port
Congestion Forum. They showed up – it was
standing room only – and spoke openly and frankly.
We have a good idea of the causes aggravating
congestion in our nation’s ports. The participants also
came with ideas on solutions. There is no silver
bullet, but I am convinced we can significantly reduce
the grid lock and congestion with hard work and
cooperation among all stakeholders. I look forward
to the next steps the Commission takes and the
participation of the stakeholders in crafting solutions.

4. Our ports must remain globally competitive to
promote economic growth. These first steps will help
foster a fair, efficient and more reliable international
transportation system.
Port Congestion Surcharges -- FMC Bureau of Trade Analysis – FMC General
Counsel, November 17, 2014:
“The Federal Maritime Commission is receiving
numerous inquiries regarding the congestion
surcharges for "labor unrest" being implemented by
ocean carriers as announced in tariff rules required to
be published under the Shipping Act of 1984 and the
Commission’s regulations at 46 CFR Part 520.
The Commission continues to review congestion
surcharge rules published in carrier tariffs and is
gathering information from carriers regarding
implementation of these surcharges.”
[Emphasis Supplied]
November 21, 2014, Hanjin Shipping, Hyundai Merchant Marine, Mediterranean
Shipping Co. (MSC), NYK Line and Zim Integrated Shipping Services implement
US West Coast congestion surcharges ranging from $800 to $1,000 per 40-foot
container on cargo heading from Asia to U.S. West Coast starting November 26,
2014. Source: Journal of Commerce. Five more carriers revive US West Coast
congestion surcharges. Mark Szakonyi, Associate Managing Editor, Nov 21, 2014.
http://www.joc.com/maritime-news/container-lines/four-more-carriers-revive-congestion-surcharges_20141121.html
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“It is when we all play safe that we create a world of utmost insecurity.”
Dag Hammarskjöld, Second Secretary-General of the United Nations, Economist.
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