The 58 members of the San Francisco Bar Pilots command salaries in the high six figures and other compensation without peer on the Bay Area waterfront. The California State Senate came to the conclusion, however, that enough is enough for this elite cadre by withholding pay raises that would have exceeded their current take-home pay of more than $450,000 per annum.
By Patrick Burnson
Published: October, 2015
The 58 members of the San Francisco Bar Pilots command salaries in the high six figures and other compensation without peer on the Bay Area waterfront. The California State Senate came to the conclusion, however, that enough is enough for this elite cadre by withholding pay raises that would have exceeded their current take-home pay of more than $450,000 per annum.
Shippers and other industry stakeholders were relieved to learn that AB 1432 was moved to the Senate inactive file. The bill proposing the rate increase was opposed by a large coalition of vessel operators across the maritime industry as well as the business community and a wide variety of agricultural interests that rely on the ports of Oakland, Stockton and West Sacramento to move most of California’s agricultural exports overseas.
The Pacific Merchant Shipping Association (PMSA)—which represents vessels, ocean carriers, and marine terminal operators doing business at all of the public ports in the San Francisco Bay and river system subject to the San Francisco Bar Pilot monopoly—offered several compromise proposals to the Bar Pilots during the legislative process, but was rebuffed. PMSA ultimately opposed AB 1432.
“In addition to their sky-high pay of over $450,000 per pilot, oceangoing vessels—and ultimately their customers who rely on the ports in the Bay—also already pay for all the pilots’ expenses, their pilot boats, their training, their licensing board’s operations and 100 percent of their exceptionally generous and dangerously unfunded pension benefits,” said Mike Jacob, vice president and general counsel of PMSA.
“These few dozen bar pilots already make more than any other pilots on the West Coast, but turned down an offer of an incremental three percent increase in rates to pay their expenses and for new navigation technology equipment, which the pilots stated was necessary to ensure higher levels of marine safety on the San Francisco Bay. Obviously willing to risk losing the millions of dollars offered by industry to pay for expenses and enhanced maritime safety, the pilots instead gambled that the legislature would give them millions more in pay increases over and above their expenses. They’ve rolled the dice and lost.”
This is the third time in the last five years that the San Francisco Bar Pilots have tried and failed to have rate increases passed by the Legislature.
Port of Oakland Sees Increased Import Volumes
With the approach of peak season, California’s third largest container port reports increased import volumes. This is the sixth straight month of inbound growth, jumping 15 percent in August compared to 2014 totals.
Port of Oakland Maritime Director John Driscoll said this could be an indication that the season will be a strong one. “We are building momentum,” he said.
Port spokespeople said overall container volume in August—imports, exports and empty boxes—was up six percent. Year-to-date total volume is still down 4.8 percent from a year ago, but that’s a significant recovery from double-digit volume declines in winter.
Imports have led Oakland’s volume rebound. The port said it lifted the equivalent of 82,492 20-foot containers (TEUs) last month. That was the most since March, when the port’s import rally began. Import growth has been continuous since the February 20 tentative settlement of a West Coast waterfront labor dispute.
The port said an increase in longshore labor on the waterfront is helping to absorb volume growth. About 150 more dockworkers are being deployed at Oakland’s five marine terminals. With added labor, the port said it has cleared a summer backlog of ships waiting to berth.
Bay Area Hosts Foreign Trade Zone Forum
The Port of San Francisco, grantee of Foreign Trade Zone #3, together with the City of Oakland, grantee of Foreign Trade Zone #56, held a free half-day forum last month at Oakland City Hall for people interested in learning about the benefits of the Foreign Trade Zone program.
The forum provided attendees with a good understanding of the program and how it can help businesses better compete in global markets. Topics discussed included an overview of the Foreign Trade Zone program, types of companies that can benefit, financial savings opportunities, the application process and compliance issues.
The Foreign Trade Zones program was established by Congress in the Foreign Trade Zones Act of 1934. Goods coming into the zones are considered to be outside of U.S. commerce even though they have physically entered through a port of entry. Duties are paid only when the finished product exits the zone and enters U.S. commerce. Foreign Trade Zones provide the opportunity to defer, reduce and even eliminate duties on imported and re-exported products.
Organizations attending the forum included manufacturers, distributors, third-party logistics companies, importing and exporting companies, freight forwarders, custom brokers, refineries, city economic development officials and members of economic forums and associations.
“This was an excellent opportunity for local businesses and community leaders to learn how Foreign Trade Zones can help reduce logistics costs and add to a company’s bottom line,” said Port of San Francisco Deputy Director Peter Dailey.
Patrick Burnson is the past president and current board member of the Pacific Transportation Association, based in San Francisco. www.pacifictrans.org
