Port Congestion Surcharge Reintroduced

November 21, 2014
By Michelle Kelley

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Some ocean carriers have reintroduced port congestion surcharges that were rescinded earlier this week following the FMC’s public notice challenging their legality.

Carriers claimed that the previously announced surcharges for U.S. West Coast ports were necessary due to labor slowdowns at the ports. Many carriers quickly retracted or postponed their implementation of the surcharges after the FMC’s notice declaring the surcharges in applicable on cargo that was already tendered.

To get around this requirement, the carriers have now reintroduced the surcharges for the same amounts, applicable for cargo in-gated in Asia on or after November 26.

The carriers may have quite the fight on their hands over implementing this surcharge, as evident from a letter written by FMC Commissioner William P. Doyle. One thing is certain—this issue is anything but resolved at this point.

Mohawk is monitoring this situation and will alert you to news as it developments.

Update: West Coast Port Congestion Surcharge (Client Alert)