Port dispute nears crisis

Shipping companies will divert cargos to other ports rather than in Israel.

The situation at Israel's seaports is nearing crisis. Shipping companies have announced that they will divert cargos to other ports rather than in Israel, after the cabinet did not discuss the situation at yesterday's meeting and intense negotiations between the Manufacturers Association of Israel, the Histadrut (General Federation of Labor in Israel), and the ports' workers committees broke down.

The ports dispute is hurting exporters. 6,000 containers with goods worth $200 million are now delayed at the ports. Some manufacturers may shut down production lines within days, either because they cannot import raw materials or cannot export goods to market.

Hydraulic steel pipe maker Schieffer-Magam Industries Ltd. is one of these companies. Its CEO, Yishai Weisman, said, "Our raw materials are not arriving on time. Rubber is damaged in the Israeli sun, and we can't export our deliveries, which is ruining our business relations. It's hard to meet delivery schedules."

The Federation of Israeli Chambers of Commerce and the Manufacturers Association today asked the National Labor Court to order the ports workers to return to regular work.

The workers committees oppose the item in the 2009 economics arrangements bill to apply the landlord model at Israel's ports. The proposal implies that the Israel Ports Development & Assets Company Ltd. will be able to operate the piers in breach of the reform agreement, which stipulates that Haifa Port Company Ltd., Ashdod Port Company Ltd., and the Eilat Port Company Ltd. are sovereign as government companies for operation of the ports, while the Ports Development & Assets Company is responsible for development and assets, but not operations.

Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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