Partnerships: New Orleans, Portland

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A memorandum of understanding between the Port of New Orleans and the Lithuanian Klaipeda State Port Authority was signed March 12 in New Orleans. Hanjin Shipping announced March 10 that it would continue its weekly transpacific vessel call at the Port of Portland.

New Orleans Signs MOU with Lithuanian Port

A memorandum of understanding between the Port of New Orleans and the Klaipeda State Port Authority was signed March 12 in New Orleans. The ceremony was attended by a delegation of Lithuanian transport and economic development officials headed by the Baltic nation's ambassador to the United States, and various New Orleans area dignitaries and port officials.

The group participated in a roundtable discussion of trade and transportation issues and toured port cargo facilities. The roundtable discussion focused on how Louisiana can support its most voluminous export to Lithuania, frozen poultry. New Orleans, which in 2013 loaded 36,701 short tons of frozen poultry for delivery to Klaipeda Seaport, accounts for about 67 percent of the cargo exported annually to Lithuania from Louisiana's Lower Mississippi River. In all, Louisiana and Lithuania exchanged 85,911 tons of waterborne trade in 2013.

Klaipeda is Lithuania's principal port as well as its third largest city. Ice-free year round, it is a Baltic transshipment center of growing significance, with direct access to the major industrial regions of Eastern Europe, including Russia, the Ukraine and Belarus, and ocean carrier connections with Western Europe, South East Asia and North America.

In their MOU, the ports agree to "share technical and professional expertise regarding port administration and development." That includes a commitment to exchange "licensed workers," pool technical information, and share "commercial information which would strengthen the traffic between the two ports or promote their development."

"On behalf of the Port of New Orleans, we welcome our esteemed guests and partners in international trade," said Daniel Packer, chairman of the Board of Commissioners of the Port of New Orleans. "We look forward to working closely with Klaipeda Seaport to grow opportunities and nurture long-standing relationships that will be mutually beneficial going forward."

Arvydas Vaitkus, director general of Klaipeda Port Authority in Lithuania (right), and Daniel Packer, chairman of the Board of Commissioners of the Port of New Orleans, sign a memorandum of understanding between the two ports at the Port of New Orleans Administration Building.
Photo/Port of New Orleans

Hanjin to Continue Weekly Portland Vessel Calls

Hanjin Shipping announced March 10 that it would continue its weekly trans-Pacific vessel call at the Port of Portland. In its notification to the port, the company cautioned that it would be reviewing operational performance on a quarterly basis.

"Hanjin has been a valued customer of the port for 20 years, and they have an important shipping franchise in this market." said Sam Ruda, chief commercial officer for the Port of Portland. "We will continue to work closely with all stakeholders to ensure that the case remains for Hanjin and all carriers to keep cargo moving through Portland's Terminal 6."

In October 2013, Hanjin officials indicated to the port and its terminal operator, ICTSI Oregon, Inc., that low productivity and escalating costs needed to be addressed at the container terminal in order for the company to remain in the local market. However, notes the port, even with the decision to stay, "operational conditions and labor productivity will need to stabilize and improve for container services calling Terminal 6 to be successful."

Hanjin is the largest container carrier calling Portland's Terminal 6, generating nearly 80 percent of its container throughput at the terminal, or about 1,600 containers per week. Hanjin has shipping contracts with many of the area's largest shippers and, says the port, provides "significant vessel capacity servicing Oregon and regional agricultural shippers." The Hanjin service supports an estimated 657 direct jobs and $33 million in personal wages annually.