In the latest twist to a storyline that would keep General Hospital fans on the edge of their seat, the State Port Authority (SC), the International Longshoreman’s Association and APM Terminals may have found an acceptable solution to keep Maersk at the port.  While the specific details have not been released, the basic terms of the proposal was agreed upon last week by all three parties.  At a macro level, the proposal calls for Maersk to use less space and equipment at their current Wando Welch Terminal location.  This should represent enough of a cost savings to keep Maersk’s Charleston operations profitable.  The implication is also that Maersk would use less labor in their paired down operations, but that has been conspicuously absent from any reports.

The final proposal will be formally presented this week in Charlotte and we should have further details then.  Stay tuned…

The Associated Press reported that Union and State officials have reopened the negotiations to keep Maersk at the Port of Charleston.  Last week Maersk, who represents +/- 25% of the Port of Charleston’s business, announced they would be leaving the port at the end of 2010.  The state port authority had submitted a proposal to Maersk to retain them, and Maersk agreed to those terms.  However, there was a requirement that the ILA union renegotiate the terms of their contract with Maersk.  The ILA refused, and Maersk announced they were leaving.

Now, after realizing what they lost, the ILA is joining forces with the state to attempt to retain the shipping line.  With volumes down and the economy in a major slump, I suspect Maersk has the upper hand in these negotiations.  To lose 25% of their business would be a major blow to the Port of Charleston.  Plus, there would be a huge blemish on their reputation within the shipping community.  Just look what happened when the West Coast ports couldn’t deliver good union relations.  If Charleston is seen as unfriendly to shippers, their place as a major port of call is in serious jeopardy.

The next few weeks will be very interesting.