Port Wars Congestion Surcharges


Lengthy months in the past, in a Federal Maritime Fee (FMC) workplace not to this point, far-off…

Carriers filed Port Congestion Surcharges to be applied within the case labor unrest considerably will increase port congestion.

It’s a time of unrest for shippers. With the essential vacation season arriving, document volumes of delivery containers are imported, solely to be caught at ports amongst horrible congestion. Chassis availability, large container ships, service alliances, and trucker shortages are all contributing components to the port congestion. However the subject that’s been worrying shippers most has been the Worldwide Longshore and Warehouse Union (ILWU) and the Pacific Maritime Affiliation (PMA) contentious contract negotiations.

Months after the ILWU contract expired, negotiations for a brand new contract turned ugly. The PMA started placing press releases out at the start of November that the ILWU is taking job motion, purposely inflicting slowdowns on the already congested West Coast ports.

ILWU slowdowns and stroll offs had been precisely what the carriers wanted to implement their dreaded Port Congestion Surcharges in quantities from $800 to $1,266 per container.

Carriers introduced instant implementation on containers they’d already acquired and a few they’d even gotten to the congested West Coast ports.

Shippers fought again.

Shippers received their first battle in opposition to these massive Port Congestion Surcharges, rightfully complaining it was unfair to be hit with such massive charges on shipments carriers had already acquired and had been already costing shippers loads of cash in delays, demurrage charges, and congestion charges from truckers.

The backlash from shippers received the eye of the FMC, who seemed into the costs.

“The surcharges that carriers have introduced don’t apply, in our view, to cargo that’s on the water already, a lot much less cargo that’s already within the ports,” Cordero informed JOC.com. “If the cargo is was already in transit, the surcharge wouldn’t be relevant.”

The FMC’s problem of the carriers’ Port Congestion Surcharges precipitated carriers to ship out letters saying suspension of the implementation of the surcharges. Nevertheless, suspension meant postponement not cancellation of the Port Congestion Surcharges.

Regardless of shippers’ new hope (yeah, yet one more not so delicate Star Wars reference) that the carriers’ Port Congestion Charges would by no means come to fruition, now the surcharges strike again.

Carriers are sending out notices with new dates for the implementation of the Port Congestion Charges. Excerpted from one such letter from Hyundai Service provider Marine (HK) Ltd., beneath is what carriers are saying to shippers:

Pricey Beneficial Prospects,

It’s totally acknowledged that present ongoing unrest labor state of affairs on the US West Coast is having critical unfavorable affect on our vessel and terminal operations that features cumulative vessel delays, operational difficulties at ports and intermodal strikes, and because of such crippled state of affairs, the operational price is considerably rising with further bills as we supply out the day by day guide of enterprise in Trans Pacific commerce for our valued prospects.

Consequently, as per the phrases of our tariff rule quantity 2-73 filed in HDMU-040 tariff, now we have to announce that CGS (US Ports Congestion Surcharge) might be utilized to cargo acquired on or after November 26 with the next quantum. This cost might be relevant to all cargo to be discharged at U.S. West Coast Ports.

HMM Port Congestion Surcharge Chart

We respect on your understanding and cooperation as effectively. It’s hoped that the state of affairs might be returned to regular and we promise that we’ll do our utmost to hold your cargo as early as attainable to the place it should be to fulfill your expectation.

These Port Congestion Surcharge bulletins let shippers know carriers are implementing the charges earlier than the additional charged shipments are acquired.

All carriers, apart from a only a few, have despatched out comparable Port Congestion Surcharge notices saying new implementation dates.

Right here’s a Port Congestion Surcharge abstract with greenback quantities and dates introduced by carriers:

Port Congestion Surcharge Summary resized 600

Every time attainable and for so long as attainable, Common Cargo Administration will assist shippers keep away from these massive Port Congestion Surcharges by importing via the previous few carriers, like Okay-Line, that haven’t but applied Port Congestion Surcharges.

For an updated listing of service announcments please obtain beneath:

Port Congestion
Surcharge Abstract

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