Santos, Brazil - A government official has predicted a quick resolution to the labor crisis in the Port of Santos on Friday, hours after a labor court ordered a return to work.
“We are getting close to the end. Resistance is abating,” said Jose Ribamar, executive secretary of the Brasilia-based port modernization group (GEMPO). Ribamar is currently in Santos to implement legislation that transfers the power of appointing longshoremen from the trade union to a workers’ pool, known as OGMO.
Despite the court order, dockworkers have shown no signs of giving up, in spite of a legal threat of financial sanctions if they do not return to work by midday.
The trade union has mobilized to preserve what it considers a historical right.
“It’s a matter of days, maybe hours. But the problem is going to be solved,” Ribamar affirmed.
Container terminal officials also expect a quick resolution. “We are ready to operate vessels with our own staff as soon as the strike is declared illegal,” said Roberto Tortima, commercial director at Santos Brasil. “I don’t need (unionized) longshoreman for anything.”
The strike, which is entering its fourth day, is already jeopardizing shipping schedules, and some carriers have already diverted ships to Rio de Janeiro or Buenos Aires, in Argentina.
“It’s a risky gamble in terms of timing. [But] if you do it well, you can be seen as a hero by the receiver (of cargo),” said a foreign shipping expert here.
At least one major ship line, which loads around 1,000 containers per week in Santos, has preferred to wait several days before diverting its vessels to another port. There are currently 20 vessels waiting to berth off the Santos cost.
Companies that are leasing vessels face the highest losses, around $15,000 per day. Zim Israel Navegacao, which has already diverted inbound ships to other ports, has failed to load some 200 containers at Santos.
“Now is the time to resolve the crisis. The union has proved indomitable,” said Dilmar Birkett, Zim’s operations manager in Santos.
“There is no more sweet talk. We’re moving towards a clash,” said a terminal official.
But at least one major ship line, which handles an average of about 1,000 containers a week at Santos, has opted to wait for another couple of days before diverting its vessels.
Companies that are leasing vessels face the highest losses - at least $15,000 a day. Zim Israel Navigation, which already has diverted inbound ships to other ports, now expects to load some 200 containers at Santos.
The company is considering a complex contingency plan that would involve the transfer by truck of containers to Rio, some 300 miles up the coast.
