[140413.EN.SEA] Hong Kong Terminals Down 20pc, Dwell Time 1-3 Days, 120,000 TEU Stuck

HONG KONG's two-week dock strike reduced container throughput 20 per cent, according to both the terminal operator, Hongkong International Terminals (HIT), and the Hong Kong Shipper's Council representing customers.

"Twenty per cent of the cranes are not functioning and ships have to wait between one to three days at the terminals," shippers council executive director Sunny Ho told the Hong Kong Shipping Gazette.

Said Hong Kong Association of Freight Forwarding and Logistics (HAFFA) managing director Paul Tsui: "According to our April 8 figures after speaking to members, about 120,000 TEU were stuck in the port."

Dr Tsui said vessel imports to Hong Kong have suffered more than exports. "Some boxes of imported cargo may be delayed for up to 10 days, while the delay for containers of exported cargo is between one to four days."

Most vulnerable, he said, were "fresh" foodstuffs delays.

Taiwan's Evergreen Line and Japan's MOL have already diverted ships from Hong Kong to other Pearl River Delta ports, mostly to one of Shenzhen, numerous under-utilised terminals, given the low tide of the annual shipping season.

Mr Ho said carriers have even higher level of control on re-exports, which account for 50 per cent of the total export volumes in Hong Kong, as shippers can look for an alternative port to move their cargo and carriers can easily change their port rotations.

Said the HIT statement: "Our operations are at 80 per cent of our daily average cargo volume. With workers continuously returning to work, we hope operational capacity will shortly be back to normal."

HIT has offered bonuses of dockers, who have not gone on strike. A temporary court injunction forbade strikers from the HIT premises, so they camped out on the road leading to Kwai Chung terminals and managed to disrupt truck movements.

Then the injunction was amended by the Hong Kong High Court, allowing a maximum of 80 strikers to petition fellow workers in the company staff parking lot, but forbade them to disrupt operations or prevent employees from going to work.

The Hong Kong Labour Department stepped in and a meeting was held Wednesday, with talks between union representatives and stevedoring contactors, who directly employ the dockers who move containers at the HIT terminal, which controls 70 per cent of Hong Kong's volume.

Mr Ho welcomed the involvement of the Labour Department, but believed it would take time to reach a compromise. He said besides asking for pay rise and eight-hour work on a shift, the Confederation of Trade Unions (CTU) might use this opportunity to strive for "the right of collective bargaining", something the employers do not wish to grant.

Jeffrey Lam Kin-fung, a member of both Hong Kong Executive Council and Legislative Council, said Hong Kong-based manufacturers have been forced to divert some freight to Shenzhen port after the strike as the hectic seasonal trading period will begin soon.

Secretary for Labour and Welfare Matthew Cheung urged all parties "to seize the opportunity to exercise mutual understanding to reach an accord". He said it is not just in the best interest of the company and its employees to end the strike, but also to Hong Kong, as the port industry is important to the economy.

Source : HKSG.