LABOR
Various questions were explored ranging from training education programs in terminal operations, safety, logistics and supply chain management; what labor unions were active in public terminals and private terminals; whether there were non-union workers; the hours of operation, days per week, and weeks per year; number of holidays per year; the rate of pay for various levels of terminal workers; and the rate for overtime, nighttime, weekend, and holiday charge for labor. The questions dealing with terminal hours of operations and days open received the greatest attention. Labor has a big influence on the cost of container terminal operations. Its bargaining methods have driven wage rates above the norm for other related types of work and high over-time rates have kept containers terminals in both the U.S. and Japan from maintaining 24 hour operations 7 days a week.
In the U.S., the West Coast waterfront contract with the International Longshore and Warehouse Union discourages night shifts and weekend shifts because longshoremen are paid a premium, sometimes as much as 60 percent more than the regular wage, to work those shifts. Stevedoring Services of America (SSA) serves COSCO (China Ocean Shipping Co.) vessels at its Pacific Container Terminal in Long Beach. In the peak season,during the normal 8 a.m.-to-5 p.m.shift on weekdays, hundreds of trucks queue up when container dwell times are excessive. In the summer of 1998, SSA announced that it would run a special Saturday gate for five consecutive weeks during the peak season. The number of trucks calling at the terminal, however, was nowhere near enough to justify the $5,000 to $6,000 per shift it costs to open the gates on Saturdays.4
In Japan, the situation is similar. On weekdays, stevedoring ends at 4:30 p.m. and in time of need by business, extra charges of 30 to 60 percent the straight-time wage are demanded. The MOT has been working towards improving cargo-handling services so that 24-hour service will be available.5 The Port of Tokyo has decided to extend the hours its gates are open for a trial period to begin in March 2000. “Extended hours trials will apply to three periods during the day - before the gates are open in the morning,during the noon recess, and after the gates are closed in the evening.” The decision was made under an action plan that resulted from a study by the Port of Tokyo Promotion Council. A committee made up of harbor transport firms, container shipping firms, labor unions, the Tokyo metropolitan government, Tokyo Port Terminal Public Corporation, terminal interests, shippers, trucking associations, and the Tokyo Port Promotion Association participated in the study. They surveyed 143 shipping-related organizations. Results revealed that 62.9 percent of shippers, 80 percent of shipping companies, and 90 percent of trucking firms were in favor of the extended hours. Terminal operators, however, pointed out that the time extensions will create certain problems, such as increased personnel expenses, and asked that the working hour system be reconsidered. Labor unions, also, demanded the enforcement of shift work.6
In the U.S., terminals that run extra shifts do so because the imported cargo is destined for importers who receive shipments round-the-clock at their warehouses. Although these warehouses do not work round-the-clock, the receiving gate is kept open continuously so drivers can drop off loads and pick up empties.7
In both Japan and the U.S., the introduction of a permanent and comprehensive seven-day-work schedule would give shippers and customers more flexibility in their transportation logistics and save them costly delays. It would also ease congestion in port areas and reduce associated environmental problems.8
