SURVIVING IN THE COMPETITIVE MARINE TERMINAL INDUSTRY

Transcription

1 January 27, 2005 SURVIVING IN THE COMPETITIVE MARINE TERMINAL INDUSTRY An Independent Stevedore s Cost Components Marine Terminal Management Training Program

2 Exhibit I ILWU/PMA RELATION ILWU International Longshoremen s And Warehousemen s Union PCLCD Pacific Coast Longshore Contract Document P.M.A. Pacific Maritime Association INTERNATIONAL LONGSHOREMEN S & WAREHOUSEMEN S UNION PACIFIC MARITIME ASSOCIATION 2

3 Exhibit II ILWU DIRECT LABOR SHIFT VARIANCES SHIFT DIFFERENTIALS Monday thru Friday 1st Shift ( ) Straight-Time Wages 2ndShift ( ) 0300) x Straight-Time Wages 3rd Shift ( ) 0800) 1.6 x Straight-Time Wages Saturday/Sunday/Holiday 1st Shift ( ) 1.5 x Straight-Time Wages 2ndShift ( ) 0300) 1.5 x Straight-Time Wages 3rd Shift ( ) 0800) 1.8 x Straight-Time Wages 3

4 Exhibit III ILWU COST VARIANCE (Effective July 3, 2004) Basic 15.0% Skill 30.0% Skill Longshore Category Category S. T. Wages $ $ $ Ins/Taxes $ $ $ PMA Assessments $ $ $ Total $ $ $ O. T. Wages (1.333) $ $ $ Ins/Taxes $ $ $ PMA Assessments $ $ $ Total $ $ $ O. T. Wages (1.6) $ $ $ Ins/Taxes $ $ $ PMA Assessments $ $ $ Total $ $ $ O. T. Wages (1.5) $ $ $ Ins/Taxes $ $ $ PMA Assessments $ $ $ Total $ $ $ O. T. Wages (1.8) $ $ $ Ins/Taxes $ $ $ PMA Assessments $ $ $ Total $ $ $ EXTREME Basic Longshore-vs vs- Basic Longshore VARIANCE (Mon-Fri 1st shift) (Sat, Sun, Hol,, 3rd shift) $ vs- $ Cost Difference $ Percent Difference 57.42% 4

5 Exhibit IV ILWU BASIC STRAIGHT-TIME TIME COST COMPARISON (Effective July 3, 2004) Straight-Time * Insurance/ PMA Man-Hour Total Straight-Time Hourly Wages Taxes Assessments Hourly Cost Basic Longshore $ $ $ $ % Skill Level $ $ $ $ % Skill Level $ $ $ $ Basic Clerk $ $ $17.02 $ Clerk Supervisor $ $ $ $ Kitchen/Tower/ Computer $ $ $ $ Chief Supervisor & Supercargo $ $ $ $ Walking Boss/ Foreman $ $ $20.02 $ * Approximate Industry Average 5

6 Exhibit V MAN-HOUR ASSESSMENTS (Effective July 3, 2004) Longshore,, Clerk & Walking Boss/Foreman: Pension Welfare Training Uniform Allowance Vacation Holiday Sub-Total Benefits Plan $15.62 PMA Cargo Dues $.58 Sub-Total Assessment Rate $ K $.82 Total Assessment Rate $17.02 (L/S & Clerks) Note: Foremen receive additional 401(k) match of $3.82 per man-hour 6

7 Exhibit VI TONNAGE ASSESSMENTS (Effective 2004/2005) OFFSHORE AND INTERCOASTAL RATES Container Rate (per R.U.) Autos & Trucks Lumber & Logs General Cargo Bulk Dry Cargo Welfare Vacation Longshore & Clerk P.G.P. Foreman P.G.P. Holiday Industry Travel CFS Program Fund Sub Total - Benefits Plan PMA cargo Dues Total Assessment Rate $17.14 $ $ $ $

8 Exhibit VII HISTORY OF WAGES AND ASSESSMENTS Longshore Wages Manhour Assessments Tonnage Assessments Tonnage Revenue Unit Up: $ % Up: $ % Up $ % 8

9 Exhibit VIII BASIC ILWU LABOR COST COMPARISON DIRECT ILWU LABOR COST Effective 1995 Effective 2004 $31.98 $45.70 Ten-Year Cost Difference: $13.72 Percent Change: 42.90% Labor Cost Includes: 1. Basic Wages 2. Payroll Taxes 3. Insurance 4. PMA Man-Hour Assessments 9

10 Exhibit IX STAFF AND OVERHEAD Operating Personnel General Manager Terminal Manager Vessel Manager Superintendents Stowage Coordinators Documentation Clerks Security Service 24-Hour/7 Hour/7-Day Watch Maintenance Mechanics Gearmen Miscellanous Leasehold Repair Utilities Sweepers 10

11 Exhibit X INDIRECT ADMINISTRATIVE COST Contracts and Marketing Billing Accounting Data Processing Safety Cargo Claims Executive Management 11

12 Exhibit XI Stevedore Operation Productivity Impact on Cost A. HOURLY STEVEDORE COST GROUNDED/WHEELED OPERATION 1. Labor Cost $1, Crane Cost $ TOTAL HOURLY COST $2, B. STEVEDORE COST PER CONTAINER Cost per Unit AVG. COST DIFFERENCE 1. At At At At At 22 Containers Per Hour $ Containers Per Hour $ Containers Per Hour $ Containers Per Hour $ Containers Per Hour $ $ 3.60 Each Container 12

13 Exhibit XII TERMINAL OPERATION LABOR COST SCENARIO: 100,000 Container-Per Per-Annum Facility Grounded/Wheeled Top-Handler Top-Handler/ Handler/Transtainer ILWU MANNING Operation Operation Operation Chief Supervisor Supervisor Clerks: In-Gate Lane Yard Transtainer Out-Gate Empty Yard Signal Men Transtainer Operators Top-Handler Operators Side-Handler Operators Walking-Boss TOTAL ANNUALIZED LABOR COST $2,300, $3,600, $4,400, AVERAGE LABOR COST PER CONTAINER $23.00 $36.00 $

14 Exhibit XIII EQUIPMENT Transtainers Top Handlers Side Handlers Hustlers Ancillary Equipment 4Radios 4Jeeps 4Pickup Trucks 4Fuel Trucks, etc. Forklifts Soft Gear 4Slings 4Shackles, etc. 14

15 Exhibit XIV EQUIPMENT INVESTMENT EQUIPMENT APPROXIMATE PURCHASE PRICE APPROXIMATE USEFUL LIFE 1. CONTAINER CRANE $ 7,000, YEARS 2. TRANSTAINER $ 1,300, YEARS 3. TOP-HANDLER $ 375, YEARS 4. SIDE-HANDLER $ 250, YEARS 5. HUSTLER TRACTOR $ 55, YEARS 6. MISC. FORKLIFTS $ 15, $ 175, YEARS 15

16 Exhibit XV TERMINAL EQUIPMENT COST COMPARISON YARD EQUIPMENT COST A. CONTAINER GANTRY CRANE $ 2,800,000 $ 7,000,000 B. RUBBER-TIRED TRANSTAINER $ 500,000 $ 1,300,000 C. TOP-HANDLER $ 250,000 $ 375,000 D. SIDE-HANDLER $ 88,000 $ 250,000 E. HUSTLER-TRACTOR $ 32,000 $ 55,000 F. 15-TON FORKLIFT $ 50,000 $ 90,000 16

17 Exhibit XVI PORT AUTHORITY LEASE AGREEMENTS Fixed Lease Cost Revenue Sharing with Terminal Operator 17