This year's Annual Review reports strong financial results, continued strategic progress and enhanced support for shipowners operating in an increasingly complex and uncertain global environment.
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Correspondent Schandy brings us this update:
Resumption of duties: Operations were resumed after the stoppages, although delays in ship servicing persist.
Negotiations and disagreements: After a long tripartite meeting at the Ministry of Labor and Social Security (MTSS) between TCP and the union, a definitive agreement on the collective bargaining agreement or minimum shifts was not reached, giving a 72-hour period to continue negotiating.
Correspondent Chadwick Weir brings us this update:
Current operational status of the Port of Montevideo and TCP
The Port of Montevideo as a whole remains operational.
The current strike action is specifically affecting Terminal Cuenca del Plata (TCP), the main container terminal in the port, rather than the port as a whole. The Uruguayan Ministry of Labour has also publicly distinguished the situation at TCP from the general operation of the Port of Montevideo.
At TCP, however, operations remain severely restricted following an indefinite strike commenced by the TCP-NELSURY union. A minimum union guard has been maintained, allowing only limited activity at the terminal. According to TCP, this arrangement is insufficient to ensure normal operational continuity.
Impact on vessel operations, cargo handling and congestion
The restrictions are currently affecting both vessel and landside operations.
The minimum staffing arrangement reportedly permits only one vessel to be worked at a time, with a single crane gang and an estimated productivity of approximately 8–10 container moves per hour. The handling of empty containers is also reportedly restricted.
There have also been significant delays affecting trucks accessing the port, with the transport sector reporting waiting times of up to approximately 18 hours in some cases.
Vessels calling at TCP may face delays in berthing, cargo operations and completion of their scheduled port stay, depending on the availability of the limited labour resources and the particular operational requirements of each vessel.
At present, we have no indication that dry bulk or general cargo operations throughout the Port of Montevideo have been suspended as a result of this dispute. The principal concern is therefore containerised cargo and operations directly connected with TCP.
Alternative terminals / contingency arrangements
Montevideo has other port operators, including Montecon, which handles container, general and project cargo in the public areas of the port. Montecon's current published schedule confirms that container vessel operations continue to be programmed.
However, Montecon should not presently be regarded as a full substitute for TCP. The available capacity, vessel schedules, shipping-line arrangements, equipment and operational requirements would need to be assessed on a case-by-case basis. Consequently, any diversion or alternative handling arrangement would require prior coordination with the relevant carrier, terminal and port authorities.
For cargoes already scheduled through TCP, we recommend that Members and their local agents maintain close contact with the carrier and terminal regarding revised berthing windows, cargo cut-offs, gate arrangements and possible contingency measures.
Guidance from authorities and other stakeholders
The Ministry of Labour and Social Security (MTSS), through DINATRA, continues to facilitate negotiations between TCP and the workers' union.
Importantly, there has been some movement in the negotiations. On 7 September, the union indicated that it was prepared to accept the company's latest proposal, subject to reducing the proposed collective agreement from five years to two years. A further tripartite meeting between TCP, the union and the MTSS/DINATRA was scheduled for 8 September, with the objective of seeking a resolution.
The Government has also indicated that the general operation of the Port of Montevideo remains normal and has so far not declared the port or TCP an essential service. The issue of essentiality has been raised publicly, but TCP itself has not requested such a declaration at this stage.
Assessment of the likely duration and implications
At this stage, it is difficult to predict with certainty how long the industrial action will continue. The fact that the union has accepted the substance of the company's latest proposal, subject to the duration of the collective agreement, is nevertheless a positive development and suggests that a negotiated settlement may be achievable.
On the other hand, the strike remains formally indefinite and normal operations at TCP have not yet resumed. Until an agreement is reached and the normal workforce is reinstated, we consider that delays and operational disruptions should be expected, particularly in relation to container vessel calls, truck movements, container delivery/collection and terminal productivity.
The situation should be regarded as a significant but localised operational risk at TCP rather than a general shutdown of the Port of Montevideo. The main exposure for Members will be vessels and cargoes dependent on TCP, with the potential for increased port stay, berth delays, reduced cargo productivity, truck congestion and knock-on effects on subsequent vessel schedules and the wider logistics chain.
