Terminal operator ICTSI Oregon, Inc. (IOI) has expressed regret over the decision of Hapag-Lloyd to also stop calling the Port of Portland on the U.S. West Coast. The withdrawal of the German box liner comes just two months after IOI’s top customer, South Korean carrier Hanjin Shipping, pulled out its services from Terminal 6 in March.
Hanjin Shipping handled nearly 80% of Terminal 6’s volume and Hapag-Lloyd took up almost the rest. Only the line Westwood remains, but it makes only one call per month.
In a statement, the terminal operator said it was “very disappointed” with Hapag-Lloyd’s decision to cease its direct Mediterranean Pacific Service (MPS) calling Portland.
The last call at Portland under Hapag-Lloyd’s MPS was by the 4,250-TEU Seaspan Dalian which sailed on March 28.
“Hapag-Lloyd has been very supportive and loyal to the Portland market. Coupled with Hanjin’s recent announcement to leave Portland and discontinue its Asia service, Hapag-Lloyd’s departure will adversely affect regional businesses that rely on Terminal 6,” the statement added.
ICTSI Oregon said its highest priority now is to retain and attract new carriers to Terminal 6, even as it insisted it remains committed to the region. It also said it will seek new direct container service to Asia and Europe.
“We are reviewing all options and taking prompt action to generate new business. There is substantial market demand for exporting and importing goods to and from Asia and Europe through Terminal 6.”
The company said it is taking calculated steps, in conjunction with the Port of Portland, “toward seeking new carriers that can capitalize on the opportunities to serve this valuable market created by Hanjin’s and Hapag-Lloyd’s departure.”
It blamed the labor union at the port, the International Longshore and Warehouse Union (ILWU), for the departures.
“For Terminal 6 to be successful, the ILWU must signal to potential container shipping lines that its almost three-year campaign of work stoppages, slowdowns, and safety gimmicks at Terminal 6 has come to an end,” said the company.
“While ICTSI Oregon will continue efforts to attract new customers, no carrier will want to make a long-term commitment to the terminal so long as ILWU workers delay cargo and vessels as a strong-arm tactic to get what they want.”
It added: “We hold the ILWU fully accountable for its actions; therefore, it is imperative that the ILWU leadership in San Francisco publicly commit that its efforts to interfere with productivity in Portland are over.”
But union officials countered that ICTSI Oregon was to blame for the longstanding problems at the terminal. It pointed to ICTSI’s alleged steep rates and negative behavior for its troubles, saying longshoremen in the 10 other export terminals in Portland had good relations with the terminal operators.
In taking its leave, Hapag-Lloyd said it wanted to improve its schedule integrity. For Hanjin, its pullout from Terminal 6, Oregon’s only deep-water port terminal, was said to have been fueled by the slow pace of work among longshore workers.
IOI is a subsidiary of ICTSI, operator, manager, and developer of container terminals in over 20 countries across the Asia-Pacific, the Americas, Europe, the Middle East, and Africa. ICTSI was established in 1987 and is headquartered in the Philippines.
Photo: Kelly_point_clark
