Charleston’s Leatherman Terminal to Reopen After Long Dispute

The South Carolina Ports Authority (SC Ports) and the International Longshoremen’s Association (ILA) have reached an agreement to reopen the Hugh K. Leatherman Terminal in Charleston after months of intense negotiations, This terminal, which originally opened in March 2021, had been largely inactive due to a protracted dispute over crane operations between the two entities.

The U.S. Supreme Court's decision in February not to intervene in the dispute marked a significant victory for the ILA, who argued that the terminal's crane operations should be handled by union dockworkers. This decision paved the way for the recent agreement, which SC Ports and the ILA announced in a joint statement, highlighting the development of a framework for long-term stability and competitiveness at the Port of Charleston.

In their statement, SC Ports and the ILA emphasized their collaboration to protect jobs and ensure a smooth transition for the workforce across all SC Ports’ terminals. “SC Ports and ILA are ready to welcome our USMX partners at the Leatherman Terminal for many years to come without hesitation as all obstacles to operations have been removed,” the statement read.

The SC Ports Board of Directors voted unanimously to support this agreement on June 26, despite previous opposition from Governor Henry McMaster in April. The reopening of the terminal is seen as a crucial step in enhancing the port's capacity and reliability, particularly in light of the booming Southeast market.

The Hugh K. Leatherman Terminal, the first new container terminal to open in the U.S. since 2009, cost $1 billion for its initial phase. This phase adds 700,000 TEUs of annual throughput capacity, featuring 1,400 feet of berth space and five ship-to-shore cranes capable of handling the largest ships calling on the East Coast. When fully built, the terminal will have three berths and cover 286 acres, adding 2.4 million TEUs of annual capacity, effectively doubling the port’s current capacity.

A spokesperson for SC Ports highlighted the significance of the terminal's reopening for U.S. supply chains, noting, “This is much-needed and timely capacity for the Southeast.” The agreement allows state workers the choice to remain non-union at other terminals or join the ILA to work at the Leatherman Terminal.

The ILA is currently embroiled in another dispute with the United States Maritime Exchange (USMX) concerning their labor agreement.