US MARITIME regulators have ordered eight carriers to explain how congestion surcharges and other fees tied to the Covid crisis supply chain disruption meet legal and regulatory requirements, reports IHS Media.
The Federal Maritime Commission (FMC) is launching an expedited review of how CMA CGM, Hapag-Lloyd, HMM, Matson, Mediterranean Shipping Co, OOCL, SM Line and Zim have levied such surcharges tied to US port congestion.
Congestion began building in southern California last summer before expanding to nearly every major US port gateway.
'The Covid-related spike in demand for imports has pushed cargo rates to record highs. Now, we hear increasing reports of ocean carriers assessing new additional fees, such as congestion surcharges, with little notice or explanation,' said fmc chairman Daniel Maffei.
Mr Maffei questioned why congestion surcharges were not simply reflected in the record high Asia to US container rates. A key indicator of container shipping rates from Asia to the US west coast broke a record last week, shattering the US$10,000 ceiling for an FEU.
Alphaliner and Sea-Intelligence Maritime Analysis estimate carriers have to add 20 to 25 per cent more capacity to handle the same level of cargo due to port congestion tying up their functional capacity.
The order from the FMC reflects growing pressure from the US Congress and the Biden administration to crack down on anti-competitive pressure.
Said UWL president Duncan Wright: 'You can call them GRIs [general rates increases], PSSs [peak season surcharges], value-added surcharges, or whatever, but at the end of the day, they do one thing: they are simply mechanisms to keep the rates up.'
SeaNews Turkey
The Federal Maritime Commission (FMC) is launching an expedited review of how CMA CGM, Hapag-Lloyd, HMM, Matson, Mediterranean Shipping Co, OOCL, SM Line and Zim have levied such surcharges tied to US port congestion.
Congestion began building in southern California last summer before expanding to nearly every major US port gateway.
'The Covid-related spike in demand for imports has pushed cargo rates to record highs. Now, we hear increasing reports of ocean carriers assessing new additional fees, such as congestion surcharges, with little notice or explanation,' said fmc chairman Daniel Maffei.
Mr Maffei questioned why congestion surcharges were not simply reflected in the record high Asia to US container rates. A key indicator of container shipping rates from Asia to the US west coast broke a record last week, shattering the US$10,000 ceiling for an FEU.
Alphaliner and Sea-Intelligence Maritime Analysis estimate carriers have to add 20 to 25 per cent more capacity to handle the same level of cargo due to port congestion tying up their functional capacity.
The order from the FMC reflects growing pressure from the US Congress and the Biden administration to crack down on anti-competitive pressure.
Said UWL president Duncan Wright: 'You can call them GRIs [general rates increases], PSSs [peak season surcharges], value-added surcharges, or whatever, but at the end of the day, they do one thing: they are simply mechanisms to keep the rates up.'
SeaNews Turkey
