As mentioned in my previous blog, the East Coast ports are in the midst of a labor dispute. With the longshoremen’s contract set to expire on September 30, 2012, many in the shipping community are bracing themselves for a strike.
Many carriers have announced Port Congestion Surcharges (PCS) to be implemented only if a labor dispute does affect operations at the ports. Here is a list of the surcharges that we have seen carriers file thus far:
| Carrier | Item |
20′ |
40′ |
40’HC |
45’HC |
| UASC | Port Congestion Surcharge |
$800 |
$1,000 |
$1,125 |
n/a |
| Maersk | Congestion Surcharge |
$800 |
$1,000 |
$1,125 |
$1,266 |
| Cosco | Congestion Surcharge |
$800 |
$1,000 |
$1,125 |
$1,266 |
| EMC | Congestion Charge At POD |
$800 |
$1,000 |
$1,125 |
$1,266 |
| NYK | Port Congestion Surcharge |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
| Hanjin | Port Congestion Surcharge |
$800 |
$1,000 |
$1,125 |
$1,266 |
| K Line | Congestion Surcharge |
$800 |
$1,000 |
$1,125 |
$1,266 |
| YML | Port Congestion Charge |
$800 |
$1,000 |
$1,125 |
$1,266 |
| HMM | Port Congestion Surcharge |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
| Matson | Port Congestion Surcharge |
$500 |
$500 |
$500 |
$500 |
What many in the shipping community may not be aware of is that the way the PCS was filed by many carriers, it sounds like the surcharge may be applicable to ALL US inbound and outbound cargo if a port-strike occurs. My initial thought when I first heard about the PCS was that it would be applicable only to US East Coast containers that were passing through the US East Coast ports. However if I am reading the PCS correctly, the carriers will charge the PCS to containers passing through all US ports (West Coast included). This makes some sense as we have already seen various customers begin to divert their US East Coast containers away from all-water service to East Coast Ports. They have begun to book these containers via rail service through the US West Coast. In the likelihood of a port strike, there is bound to be congestion on the West Coast.
Importers and exporters alike should be preparing themselves for the likelihood of the strike as well as the resulting surcharge.
-Jimmy Ting
jimmyting@gwlcorp.com
