Congestion Surcharge Announcement

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? Unfortunately, there is very little that can be done to fight this, and it is unlikely that the FMC will take any steps to prevent implementation.

What can exporters do about this? Our only advice would be to hold bookings if possible, and wait it out.

The implementation of this charge will be messy as there are vessels waiting for a berth originally scheduled to discharge prior to November 17th. We will be monitoring closely and will keep you updated as the situation progresses.