Asia/Europe conference implements first peak season surcharge
The Far Eastern Freight Conference (FEFC), which includes most of the Asia/Europe container shipping lines, said today it will initiate a peak season surcharge for the first time, this summer and fall.
The $110-per-TEU charge, equivalent to $220 per 40-foot equivalent unit (FEU), will apply to “all westbound shipments from Asia (presently excluding Japan)” shipped from Aug. 1 to Oct. 31, the FEFC said.
“Member lines may, after giving due notice, amend this date should conditions in the trade warrant such a change,” the FEFC added.
The practice of a peak season surcharge for the Asia/Europe is modeled after the transpacific container trade, the Transpacific Stabilization Group has for several years set an Asia-to-U.S. surcharge for the peak season. The TSA’s surcharge for the forthcoming peak season is $400 per FEU, or nearly twice the proposed FEFC surcharge.
The FEFC said the high vessel utilization during the peak season “puts extra burden upon vessels and equipment and increases operating costs.” The conference said this particularly includes equipment imbalance, increased terminal congestion, the cost of leasing and off-hiring containers, and the extra cost of transiting the Suez Canal.
The Asia/Europe conference has no plans to impose a peak season surcharge from Europe to Asia, though.
“There is no peak eastbound,” said Rod Riseborough, FEFC director.