Issue 379, November 25, 2002

We are pleased to share with you that the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) reached a tentative contract agreement late on Saturday, November 23, which should end the long and damaging labor dispute that had significantly affected worldwide shipping. The agreement was announced by the chief federal mediator, who said that the tentative agreement provides "substantial improvements in wages and benefits for union members and also provides the necessary technology and dispute-resolution improvements needed to ensure that America's West Coast ports continue to modernize and increase both efficiency and productivity."

While details of the agreement are yet to be released, one key aspect is that it will be a six-year agreement, as opposed to the usual three, guaranteeing labor peace until the year 2008.

Both the PMA and the ILWU have made statements supporting the agreement. James Spinosa, President of the ILWU, said that about 100 key ILWU members will meet on December 9th to ratify the pact, and will then urge the general membership to do likewise.

While nothing can be considered official until final union ratification, it appears to be a done deal, and the great uncertainty that has existed over the past few months should hopefully disappear quickly. President Bush has issued a statement congratulating both sides for their efforts to end the disagreement.

We will continue to keep you updated until the pact is ratified and the matter becomes history. But, with today's announcement, we can advise that it is safe to return to normal shipping patterns, as it is no longer necessary to consider diverting your freight to other ports due to a possible work stoppage on December 27th. However, keep in mind that carrier rotations and port calls have yet to return to normal due to the recent lockout. As such, space and equipment limitations still exist and should continue to be taken into consideration.

Sincerely,

Gary Osterbach
Director, Ocean Services
Danzas AEI Intercontinental

Please note that due to the complex nature of the subject matter, DHL Danzas Air & Ocean cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with DHL Danzas Air & Ocean.