Five shipping lines warn Uruguay the port dispute is damaging its international standing

Five of the leading shipping lines that operate at Uruguay's Montevideo port have cautioned the Uruguayan government that the ongoing labor dispute at Terminal Cuenca del Plata is inflicting severe economic and commercial damage, and has significantly tarnished the nation's international reputation, according to a letter addressed to six ministers.

The letter, signed by Maersk Uruguay, Ocean Network Express, CMA CGM Uruguay, Cosco Shipping Lines, and Hapag-Lloyd Uruguay, was received by the ministries on September 24 after being sent on September 22. The companies describe the situation at the specialized container terminal as one of "extreme uncertainty and paralysis," with more than 35 days of operational disruption since the start of the year.

They report canceling calls and unloading imports at other regional ports, resulting in unforeseen costs and breaches of commitments with exporters, importers, and hauliers. The shipping lines argue that the loss of transshipments has led global operators to view Uruguay as an "unsafe, unstable, and commercially unreliable logistics hub," and urge for an immediate, substantive solution to restore predictability.

The dispute stems from the expiry of the previous collective agreement, with the company seeking a five-year deal while the union is willing to sign for three years, requesting better terms if the period is extended. The issue has been ongoing for months, despite an agreement on most aspects of the new deal. On September 17, the company issued a resolution for essential services to ensure minimum terminal operation, which the union rejected as a restriction on the right to strike, leading to the planned stoppage on September 24.

The shipping lines have pledged to quantify the damage caused by the action, and exporters and importers' chambers have also reported losses. Minister Oddone has called for a review of "certain aspects of port regulation" to enhance the port's competitiveness. A recent tripartite meeting at the National Labour Directorate examined a government proposal, but no agreement was reached.

The shipping lines warn of the potential job losses in the industry and the risk of projecting an inappropriate image due to their smaller economic scale compared to coastal countries in the region.