MAERSK, Mediterranean Shipping Co, NYK, CMA CGM, Cosco, USAC Evergreen, OOCL and others have suspended US$1,000 per FEU west coast congestion surcharges, reports Newark's Journal of Commerce.
According to plan of the Transpacific Stabilisation Agreement (TSA) member lines would collect the enormous surcharge starting last Monday for cargo landing at US west coast ports.
Two days later, the US Federal Maritime Commission (FMC) cast doubt on the legality of carriers imposing a surcharge on cargo still at sea.
If a container is on a ship in the middle of the Pacific Ocean, FMC chairman Mario Cordero said, it was his understanding that the "surcharge would not apply to that cargo".
To this Commissioner William Doyle added: "I believe the ocean carriers should not be adding surcharges for port congestion under any circumstance for imports or exports.
"Indeed, the ocean carriers have a substantial hand in the formation of port congestion matters as identified above. Things will get better over time as the supply chain adjusts to the changes we are experiencing in ocean transportation and services," said Mr Doyle.
The lines declined to reveal the reasoning behind the move, but the Maersk customer advisory said: "We take the feedback and viewpoints shared with us very seriously. As a result, we will delay the application of the congestion surcharge until a thorough review can be completed with all stakeholders."
The FMC said it had received numerous inquiries from shippers frustrated with the surcharge.
Shippers were most upset. "As a shipper we understand the dire situation at the port and are willing to share the cost. We’re not unreasonable. However the way PCS [port congestion surcharge] is being implemented is wreaking havoc into our entire year's expectations," said one.
Even after the TSA notice was served, member lines sent out individual announcements of own telling them of the instantly applicable $1,000 per FEU surcharge.
The FMC is also pursuing inquiries into the TSA's proposed amendment to permanently include the westbound transpacific trade as part of the TSA.
This related to an old TSA plea to hold a 24-month trial period to expand the geographic scope of organisation to include westbound transpacific trade.
"That 24-month trial period began on April 14, 2013. I am not going to disclose at this time the questions I am asking in the request for additional information," said Mr Doyle.
WORLD SHIPPING
20 November 2014 - 10:36
Carriers suspend US$1,000/FEU congestion surcharges in face of feedback
MAERSK, Mediterranean Shipping Co, NYK, CMA CGM, Cosco, USAC Evergreen, OOCL and others have suspended US$1,000 per FEU west coast congestion surcharges, reports Newark's Journal of Commerce.
WORLD SHIPPING
20 November 2014 - 10:36
Carriers suspend US$1,000/FEU congestion surcharges in face of feedback
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