Shipping downturn leads to layoffs for port's longshoremen

Almost all of the remaining longshoremen who work at the Port of Eastport are being laid off this month, as the downturn in shipping continues.
In October 2020, 16 members of the 32 members of the local union, the Northeastern Longshoremen's Association (NELA), had accepted an early retirement package offer by Federal Marine Terminals (FMT), the terminal operator. Another 11 longshoremen are now being laid off, effective February 28, leaving two longshoremen to unload and load wood pulp from Woodland Pulp for storage in the port's warehouses.
Tom Critchley, general manager of FMT in Eastport, says those who are being laid off are being given a severance package, per the collective bargaining agreement between the union and FMT. He says the decline in shipments from the Woodland mill is the reason for the layoffs, with the port not having shipped any product since last November. The port authority's tonnage estimate for this year is only 60,000 metric tons, and any shipments are not expected to begin until July. At one time the port shipped 400,000 tons of wood pulp in a year, with another 50,000 tons of cows to Turkey, and there were three gangs working.
Critchley hopes that the longshoremen can be called back to work this summer. With the wood chip trial shipment using the port's phytosanitation equipment planned for this spring, he says, "We'll have to look at bringing some of the guys back then."
"FMT remains committed to the port, and hopefully it's a short-term layoff and not a permanent one," says Critchley.
Glynn Urquhart, president of the local longshoremen's union, says the layoffs were not unexpected, "but it's still devastating to those involved -- anytime you lose jobs." He says that FMT has been very fair in its treatment of the longshoremen. "There've been no ships since November, and they've kept us on with full benefits until the end of this month. They've been more than fair." He adds, that the benefits, which include full family health plans, have been what the longshoremen "were hanging on for. Now they're searching to find insurance in the marketplace. The benefits were a good piece of the job."
Despite the layoffs, Urquhart says that for the time being the union will be "holding steady."
As for the future of the port, Chris Gardner, the executive director of the Eastport Port Authority, is optimistic. He comments, "We know in this downtime right now that Federal Marine pledged a long-term commitment to us. They've been here for 40 years." He notes that the layoffs are a cost-cutting measure by Federal Marine. "FMT has carried the union contract for the past two years. They've done so in the bad times and in a losing scenario for the port. I tip my cap to FMT for its continued investments in the port."
He notes that the downturn is "no fault of FMT or the port authority. It's market-driven." He adds, "I'm absolutely certain FMT remains committed to its partnership with the port authority. FMT has been with us in good times and has stuck by us in bad times, and that means a lot." He notes that FMT "has put a lot of money in this community. I have zero concern about FMT's commitment to the Port of Eastport."
Noting that he expects a turnaround in shipments during the second half of the year, Gardner believes that the port authority's estimate of 60,000 tons of wood pulp being shipped this year will be met. However, he notes it may not all be pulp from the Woodland mill or even shipped over the pier, as some could just be stored for periods of time in the warehouses at the port.
Presently the mill is shipping product domestically instead of overseas. "We have to find the balance," says Gardner of the relationship with the mill. "We've both been there for each other and still need to be there for each other."
But Gardner also points to other shipping opportunities this year, including for offshore wind projects and some containerized product. "The port has to get beyond the Woodland mill tonnage."
Concerning when shipments may begin again, Scott Beal, spokesman for Woodland Pulp, comments, "This is inherently difficult to respond to with clarity or certainty for that matter, as such decisions are fluid and grounded in basic economics. Like most private enterprises, we have an obligation to sell our products where we can derive the maximum return."
As for why shipments have temporarily stopped, Beal says, "Over the past few years, we have increasingly been looking to participate more in the domestic, i.e., North American, market as opposed to the global export business." He notes, "The domestic market, generally speaking, is a more logical market for our mill to participate in."
As for long-term projections, he states, "As always, we will continue to participate in pulp markets that have the greatest benefit to our operations, whether they be in the export or domestic arenas."
Beal comments, "Without question, our mill has enjoyed a long-standing and beneficial relationship with the port and their hard working women and men that have served as vital partners in our pulp shipping logistics."
Gardner observes, "These times are not what we hoped for," and he notes that the pandemic has changed shipping through the port. "The strength of the port authority is better than 10 times what it was 15 years ago. We can weather the storms, and FMT, as our partner, is willing to weather the storms."
As for the long-term future, Gardner says, "The Port of Eastport will be as strong as it ever was and I think will be stronger. We will make sure the port authority will be here for a long time."