We in the maritime industry will be facing new changes and challenges this year. In the aftermath of the devastating economic downturn in 2009, shipping business on the East and Gulf coasts of the United States has been slowly, but steadily, creeping back. Volumes are steadily growing, and our efforts to meet world-class standards of productivity in our member ports, while challenging, are starting to bear fruit.
The ratification of the new master contract in April 2013 and the subsequent implementation of its various pieces during 2014 have not only impacted our members, but also have impacted the U.S. economy in a number of ways: 120 million tons of cargo; 14,500 union jobs; $1 billion in master contract wages annually; generation of 550,000 directly related jobs and 2 million indirect jobs, with estimated total wages in excess of $100 billion, with more than $11 billion paid in state and local taxes.
In 2015, we will see the growing trend continue. As of Oct. 31, 2014, the Panama Canal Expansion Project was at 82 percent completion. We expect the balance to be finished during 2015. New post-Panamax vessels will be able to transit the canal with up to 13,000 TEUs, compared with the current 5,000 TEUs, doubling the canal’s capacity and having a direct impact on economies of scale and international maritime trade.
Another challenge that will impact labor relations aspects of our industry is the approach of bargaining for the next master contract. Plans are in progress to continue our work with the International Longshoremen’s Association to identify areas in need of improvement, to continue open and honest discussions about the next contract, and to go into our next negotiations with both sides focusing on and achieving common goals to provide security and consistency for our ILA workforce and USMX members with a new master contract in 2018.
David F. Adam, Chairman and CEO, United States Maritime Alliance