Newsflash: Carriers postpone surcharges
MSC has shuttled its planned imposition of a port
congestion surcharge on the West Coast.
By Chris Dupin |Friday,
November 28, 2014
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.
Congestion forced shippers into air freight at height
of the market, Drewry says
Excerpt from Journal of Commerce | By: Greg Knowler
| December 1, 2014
HONG KONG — The U.S. West Coast port
congestion drove shippers to air freight at the worst possible time with
rates for air cargo at the seasonal highpoint of what is turning out to be
the most robust peak season in years.
After four months of stable pricing, air
freight rates surged in Oct. on the back of strong demand and the conversion
from ocean shipping, according to Drewry’s
container insight. This has temporarily reversed the long-term modal shift
from air to ocean as shippers took to the skies
to make sure their goods hit the stores in time for the U.S. holiday season.
Ocean carriers and terminals have been
battling congestion in Los Angeles and Long Beach all year, but conditions
have worsened in the peak-season months, severely disrupting container
handling at the U.S. gateway.
As delays began to roll down the supply chain,
some shippers pre-empted the disruption in the container sector by moving
cargo earlier and via the longer all-water route to the U.S. East Coast.
However, as the countdown to “Black Friday” and the start of the holiday
season neared, more costly air freight solutions were required.
According to Drewry,
high average rates on the Asia-U.S. route was responsible for most of the
overall hike in east-west trans-Pacific air freight rates in Oct. By
contrast, container freight rates on the route were in decline.
When the Nov. numbers come in, Drewry expects air freight rates will have continued
rising as the shopping season picked up, while tighter capacity would have
supported stronger pricing on certain trades. The backlog at U.S. west coast
ports has the potential to soften the traditional drop in Asia-U.S. rates in
Dec. and depending on how long the issue remains unresolved, could prop up
air rates until Chinese New Year in February.
Our regulatory experts are monitoring the situation and keeping a
close eye on labor negotiations, which began on May 12, 2014. In the meantime
we are checking shipment status on a daily/hourly basis to see where our
client’s cargo stands in movement towards its final destination. While we
can’t control the situation we can keep you informed.
contained in this newsletter has been compiled from various industry
newsletters and other public sources. While we use reasonable efforts to
furnish accurate and up-to-date information Page & Jones, Inc. is not
liable or responsible for the accuracy or reliability of any information