Port Congestion / Surcharge Update
November 16, 2014PMA / ILWU Negotiation Update
January 8, 2015As West Coast port congestion and ongoing labor challenges continue to stress port terminal and ocean carrier operations, no one is immune from the effects.
Citing difficulties in maintaining normal port and vessel operations under present shipping conditions, ocean carriers are stating that maintaining normal business operations is not possible as extraordinary costs are being incurred at every step of cargo movement.
The unfortunate result of the congestion is that carriers are enforcing Port Congestion Surcharges previously filed in their respective tariffs in 2012 in anticipation of possible labor action / port disruption.
Ocean carriers are announcing the surcharge will be effective for all cargo received for export via US West Coast ports – including cargo originating at inland origins – on or after Monday November 17, 2014.
Following is an overview of the average Port Congestion Surcharge being levied on exports from / via U.S. west coast ports:
Size Type Level (USD)
20’ (all types) $240.00 per cntr
40’ (all types) $300.00 per cntr
45’ (all types) $350.00 per cntr
Carriers are advising west coast port operations will continue to be closely monitored and the surcharge re-evaluated as the situation develops. Any change in the status quo or further notice regarding this surcharge will be communicated accordingly.
We remain hopeful that the PMA and ILWU will resolve the pending labor issues soonest resulting in a return to normal business operations. Unfortunately, only time will tell.
Thank you for your understanding and patience during this challenging situation.