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Shipping line to leave Port of Charleston

Published on 2007-11-01 being readed 1037 times

The Maersk Line announced on Thursday it will be leaving the Port of Charleston by the end of 2010.

The shipping company, which has told the South Carolina State Ports Authority of its plans, also announced it plans to move its South Atlantic Express service - which represents 25 percent of the company’s port calls - to other nearby ports.
Maersk said it is at a cost disadvantage against competitors in the port’s common yard because its dedicated port must use union labor.

A proposal from the State Ports Authority that would have allowed Maersk - which was looking to reduce its costs - to move into the common yard needed the consent of the local International Longshoremen’s Association. But the union did not consent, forcing Maersk to make the move.

"The South Carolina State Ports Authority offered us a workable solution," Maersk spokesman Dana Magliola said. "The local ILA refused to consent, and so we are forced to move."

In a statement, Ports Authority president and chief executive officer Bernard S. Groseclose said the Port is disappointed the union would not make the concessions necessary to keep Maersk in business there.

"Even though we had an enforceable contract through 2010, we made significant concessions and presented two contract options at Maersk’s request," Groseclose said. "This Port, our region and our state will suffer greatly from Maersk’s departure. This will mean great losses for our economy at a time when we can least afford it."