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No West Coast congestion surcharges until 2015

FMC says TSA members have pledged to postpone congestion surcharges, but $1,000 GRI still looms.

   The Federal Maritime Commission said the 15 ocean carrier members of the Transpacific Stabilization Agreement have individually committed to forgo the imposition of any port congestion surcharges until 2015.
   After plans for surcharges were announced — amounting to $1,000 per 40-foot container in nearly all cases — the FMC said it “received numerous inquiries” and on Nov. 17, began collecting information regarding the “timing and legal sufficiency” of the surcharges.
   Transpacific carriers “timely responded,” it said, and many carriers announced temporary suspension of the surcharge during the week of Nov. 24, some on Thanksgiving Eve.
   FMC Chairman Mario Cordero said he welcomed “the individual commitments of the ocean carriers to postpone port congestion surcharges into 2015. During this time, commission staff will further address with the carriers our concerns for the lawfulness, fairness and adequacy of notice of implementation. The carriers’ commitment to defer the congestion surcharge offers the opportunity to continue this important dialogue and pursue greater transparency as to the timing and the need for future carrier surcharges. The monitoring by commission staff of port congestion and related surcharges will continue.”
   However, many transpacific shippers still face higher costs before the end of the year.
   TSA says its members are recommending a
$1,000 per 40-foot container general rate increase, to be effective
December 15.     
   The FMC asked shippers and other affected parties are invited to submit any updates as to congestion surcharges or recent shipper advisories received from carriers to its Bureau of Trade Analysis.

Chris Dupin

Chris Dupin has written about trade and transportation and other business subjects for a variety of publications before joining American Shipper and Freightwaves.