Newsflash: Carriers postpone surcharges

MSC has shuttled its planned imposition of a port congestion surcharge on the West Coast.    More container carriers have confirmed they are postponing plans to impose a congestion surcharge on cargo moving through West Coast ports.
   MSC, the second-largest container liner company, said it “has postponed the congestion surcharge for cargoes moving over U.S. West Coast ports. Although congestion at these ports continue to cause substantial delays to our clients, and considerable costs to ourselves, we have decided not to impose this charge at this time.”
   In a notice dated Wednesday, Maersk, the largest container carrier, said “congestion is real and tangible, and a reality which will continue to impact the U.S. West Coast for the foreseeable future. That said, we have made the decision to delay the application of the congestion surcharge until further notice. The congestion surcharge will, for the time being, not be applied to any cargo as otherwise communicated previously.”
   CMA CGM said in a customer advisory dated Wednesday it had decided to suspend the implementation of an import port congestion surcharge.
   They are among many carriers that have decided for a second time to postpone congestion surcharges on cargo moving through West Coast ports.
   While creating a great deal of confusion on Thanksgiving Eve, the news was welcome as it spread among shippers and forwarders.
   The forwarder Mallory Alexander sent an email to customers Wednesday telling them to “please be advised, we have received information from several reliable sources that the TSA carriers shall indefinitely suspend implementation of the port congestion surcharge.”
   Peter Friedmann, executive director of the Agriculture Transportation Coalition, said, “They are all now suspending or delaying surcharges — all together, like lemmings.”
   Bruce Carlton, chief executive officer of the National Industrial Transportation League, said, “I don’t have the full story, but what seems to be missing altogether in the on again/off again surcharge business is any semblance of ‘clear and definite’ criteria for their imposition. That standard is required by FMC regulations, and the agency ‘reminded’ the carriers just a few days ago.
   “While I need to learn more about what is happening right now, I am always on alert when they all take the same action at the same time,” he continued. “Like I said, I may be missing some important pieces, but I will be digging in deeper.”
   Sara Mayes, president of Gemini Shippers Association, also said she was receiving notice of surcharge suspensions.
   On the day before Thanksgiving, plans were changing so quickly that even senior managers at some companies were unable to give definitive information.
   “What a relief before you hit the road for Thanksgiving travel,” one 3PL executive told American Shipper. “We are receiving advisory letters from some ocean carriers about a postponement of the port congestion charge until further notice.
   “Does this mean that ocean carriers will give it up? No. They don’t want to,” he continued. “They will try to use it to increase rate level whenever there is a chance. After the Thanksgiving holidays, congestion is expected to get slightly worse. So ocean carriers may use this to re-assess the port congestion charge next week. Another possibility is they would rather focus on the Dec. 15 general rate increase instead of the port congestion charge.”