West Coast Port Congestion Surcharge Back ON

As a follow up to previous announcements regarding the U.S. West Coast Port Congestion Surcharge, we regret to inform you that many carriers are beginning to revoke the surcharge postponement.

U.S. West Coast Port Congestion Surcharge Details

Scope:  

All U.S. Inbound Cargo via U.S. West Coast Ports

Surcharge Rates: 

$800 / $1000 /$1125

20′ / 40′ / 40’HQ

Effective Date:

All inbound cargo entering US West Coast Ports that is in-gate at origin on November 26, 2014.

Why did the carriers suspend the surcharge in the first place?

In an announcement to customers, MSC states:

“This postponement was done as a result of the market concern as to how we determined the triggering of the surcharge as well as the concern as to how we intended to collect the surcharge for cargo already in transit to the U.S. West Coast.

With several weeks of slowdown on U.S. West Coast port operations, our vessels are being worked at a slower pace, extending the stay at the port, which consequently leads to other vessels having to wait a significant number of days outside the port. Consequently, a costly recovery program, including a multitude of services, has been orchestrated to lessen the delay of U.S. exports, Asia exports and flow of equipment into Asia.”

What is the Port Surcharge’s intended use?

MSC states:

“MSC wishes to recover our expenses and mitigate our potential loss of revenue.”

Hanjin states:

“In the midst of the continuous slowdown in operation caused by the labor unrest in the U.S. West Coast, our vessel/terminal operation is being heavily affected by severe congestion, which is creating operational delays and mounting costs ranging from vessel, terminal, and fuel to administrative expenses.”

 

Scarbrough International continually works with carriers to waive or mitigate these charges.

We thank you for your understanding and patience during this challenging situation, and assure you that we are doing everything in our power to continue to keep your supply chain moving as quickly and efficiently as is possible under the circumstances.

Scarbrough continues to monitor the situation as it continues to unfold.  Please keep connected via our website blog  for the most up-to-date information. Stay tuned.

Scarbrough International, Ltd. takes value in being your international logistics partner. Please contact your dedicated Customer Service Representative or send an email to info@scarbrough-intl.com if you have questions or comments.