This latest patch of trouble is not good news for Gioia Tauro which in the last two years has experienced a decline in throughput – 3% in 2005 and 7% in 2006 – down to below the 3m teu mark. Also, more immediately, Cecilia Battistello, president of Contship Italia, has made the point that the recent strikes have proved a decisive factor in deterring the world’s number two container line, MSC, from making Gioia  Tauro a major Mediterranean hub for its services and provoked Maersk Line to make preparations to scale down its involvement there.

Transhipment hubs such as Gioia Tauro are by their very nature  dependent on high volumes. The margins are very low in this sort of handling business and as such volume is essential in order to generate an acceptable level of profit, a fact that is  not always readily perceived by the docker fraternity.

Equally, it is true to say that transhipment activity in the Mediterranean is today a highly competitive business which over recent years has seen average terminal handling charges for a transhipment move (off one vessel onto another) driven down to bargain basement levels – typically $40 all in. Against this background, it is not hard to imagine that there just might be some serious intent in the Contship Italia threat “we are ready to leave”, as voiced by Ms Battistello.

Certainly, this appears to be a decisive time for Contship Italia and other terminal operating groups in the Mediterranean struggling with high costs and slim, if indeed any, profit margins. Labour has to be realistic and ultimately it is also reasonable to expect that lines may have to accept a period of rate restoration as far as terminal handling charges are concerned to solve at least part of the problem.

MIKE MUNDY