CONGESTION SURCHARGE COMES BACK INTO PLAY:
After announcing a surcharge and then suspending it, carriers are again announcing a congestion surcharge for cargo going into West Coast ports with an effective date based on gate-in at origin of November 26, 2014. The surcharge is again being questioned and examined by the FMC as they review the trigger mechanism and the undefined longevity.
Volume 4, Issue 3 of the WSSA Grapevine is now available!
Our Fall 2014 issue features the latest news on the port congestion plaguing the West Coast, updates on the G6, 2M, Ocean Three, and CKYHE carrier alliances, a look at Customs "One Border" Initiative, a glance at the new warehouse for Alba Wine and Spirits Warehousing and Distribution, and details on WSSA's own insurance enhancements.
On Monday, November 24, 2014, union workers in Belgium have scheduled a protest against newly formed government policies. As union dockworkers will be among those protesting, and with the anticipation that picket lines will be blocking Port of Antwerp entrances, it is most likely that the port will not be able to operate at normal levels for that day. For the sake of planning, port officials are asking customers to consider the terminals closed for the day.
Currently, there is a great deal of confusion surrounding the congestion surcharge announcements made by ocean carriers for cargo coming into the West Coast. Unfortunately, answers are still elusive. The FMC posted a notice on Monday stating that any published tariff rule that increases costs to a shipper may not be effective until 30 days after publication. Consequently, most of the tariff rules implementing these congestion surcharges were published in May of this year.
Carriers are now announcing the implementation of congestion surcharges. The carriers filed the potential surcharges with the FMC in anticipation of labor disruption on the West Coast. As “disruption” was loosely defined, they have the legal right to implement the surcharges. The bad news is that most carriers are announcing the surcharges take effect on cargo discharging on or after November 17, 2014.
What can importers do about this?
