Congestion Surcharge Update

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. However, as the FMC stated, these tariff rules must be “clear and definite as to the implementation and termination of the surcharge.”

That very phrase is what FMC Chairman Mario Cordero is calling into question. The Journal of Commerce reports that, according to Cordero, the carriers citing “labor unrest” is not specific enough to justify the hefty congestion surcharges they are implementing. Currently, the FMC is reviewing whether there is a solid basis for the surcharges. Chairman Cordero is also convinced that these surcharges should not apply to cargo that is already in transit.

As far as when exactly these surcharges will be implemented, it differs by carrier. Already, some carriers have sent out notices revoking the surcharges.

We will do our best to work with carriers to mitigate these surcharges as much as possible for our members. If you have any additional questions or concerns, please feel free to contact us by phone or email.