Port to offer 5% carrier discount
Rate cut will last for first 3 months of next year
The State Ports Authority on Wednesday announced an across-the-board rate discount for the Port of Charleston's container carrier customers.
Wade Spees
The Post and Courier
The Mediterranean Shipping Co., the port's second-largest customer, will save about $10,000 per ship with the discount.
For the first three months of next year, the SPA will reduce its contract unit fees, which is what the agency charges per container moving across the pier, by 5 percent. The agency calls the move, something it has never done before, its "mid-winter rate rollback."
"Our carrier customers are facing some very challenging market conditions," Bernard S. Groseclose Jr., the SPA's president and chief executive officer, said in a statement. "We heard from them and we're responding. This sends a clear signal that we are serious about their business today and in the future."
The Port of Charleston's container volume has fallen 4 percent from the start of its fiscal year in July to November compared with the same period last year. Nearly 13 percent fewer cargo containers, measured in
20-foot increments, came through the port last month alone when compared with November 2007.
Sergio Fedelini, vice president of Mediterranean Shipping Co. in Mount Pleasant, said Wednesday's announcement was good but not surprising news.
"Business is slowing down across the board," Fedelini said. "This industry and the port are not immune. It's time to retain business and to bring the most business to Charleston."
MSC is the port's second-largest customer, and Fedelini said a 5 percent rollback could save the company an estimated $10,000 per ship.
"It is a nice amount of money, but more than the money it is important the port is showing it is aware of the economy," he said.
He said the rate cut should make Charleston more competitive among Southeast ports.
The move will help out more than 25 container carriers, according to SPA public relations director Byron Miller.
"It's not insignificant, and it is coming right off the bottom line," Miller said.
Maersk Line, the port's largest customer, could not be reached for comment on the reduction.
The Danish line has threatened to pull out of Charleston unless it can get some financial relief. Maersk, which accounts for nearly one-quarter of all container business at the port, has faced "shortfall" fees for not meeting the volume set forth in its contract with the SPA.
To improve its bottom line, Maersk wants to move its operations to a "common-use" area of the port where non-union SPA employees would perform jobs that now fall to organized labor.
The three maritime unions collectively rejected that proposal in a unanimous vote last week.
Reach Allyson Bird at 937-5594 or abird@postandcourier.com.
E-mail this story 
Printer-friendly version
Notice about comments:
The Post and Courier is pleased to offer readers the ability to comment on stories. We expect our readers to engage in lively, yet civil discourse. The Post and Courier does not edit user submitted statements and we cannot promise that readers will not occasionally find offensive or inaccurate comments posted in the comments area. Responsibility for the statements posted lies with the person submitting the comment, not postandcourier.com. If you find a comment that is objectionable, please click "suggest removal" and we will review it for possible removal. Please be reminded, however, that in accordance with our Terms of Use and federal law, we are under no obligation to remove any third party comments posted on our Web site.
Full terms and conditions can be read here.
Comments
This article has 3 comment(s)
Posted by TRODI on December 18, 2008 at 8:37 a.m. (Suggest removal)
Only an idiot would carry out a port expansion when our country is nearing depression with recovery perhaps years away.
It takes years to build them so it should be ready right on time then.did you ever stop to think about how many people it takes to build a port.it is exactly what we need in this recession .JOBS!.a few 100 jobs to build it for a few years.you dont wait till the last second to build or its too late.the port just doesnt ship goods for the Charleston .stuff goes out to several states.
Posted by yird on December 18, 2008 at 8:59 a.m. (Suggest removal)
JimIslander We should use these funds to keep essential services in our state operating and to fund programs that are now in the process of being cut.
==========================================================
Where does it say anything in this article about expanding the port?
What's an essential program, something that benefits everybody, or just a few losers?
Name one progressive government program that is NOT a failure.
Posted by palmettotree on December 18, 2008 at 6:01 p.m. (Suggest removal)
JimIslander you are being stupid. The expansion is just not for the port. It is for everybody. The expansion on down the line means more work for everybody. Do some research before you spout off. The port did not get Daniel Island which they needed for the mega ships that are being built. It is due to this that the port could not expand when it should have. Daniel Island would have been open already and the port could be earning much more because they could have attracted the bigger ships. Which meant more jobs in the area plus the state.
JimIslander quit spouting off on subjects you don't even know about. Do you work for the state, the port, a shipping line, a truck line, a distributing warehouse? How about a business that counts on the ports for some of their income. Like I said do research. The port makes money for the state. But because they had to put off their expansion the state got gipped too. Do you know how much money the port poured into the Ravenel bridge? Did you know that the port built exits ramps for the daniel island terminal that was suppose to open? I didn't see the people of Daniel Island repaying the port back for that when they didn't get it. That was one of the conditions for the DI port. The port got screwed on that one. Research buddy, research and quit talking out your...you know where.