West coast congestion surcharge withdrawn as phalanx of liners crumbles
ON-AGAIN off-again US west coast congestion surcharges appear to be off again in the case of Maersk and CMA CGM, which have decided to join the rest in suspending US west coast fees after announcing them, withdrawing them, re-instating them and now withdrawing them again.
After vociferous objections from shippers, and the US Federal Maritime Commission voicing its displeasure and casting doubt about the legality of surcharging cargo at sea, the phalanx of shipping lines wavered, buckled and then surprisingly rallied, only to crumble again.
As Maersk explained the congestion surcharge "will, for the time being, not be applied to any cargo as otherwise communicated previously". CMA also sent out an advisory saying the surcharges would not be imposed after all.
Earlier MSC announced it "has postponed the congestion surcharge for cargoes moving over US west coast ports. Although congestion at these ports continue to cause substantial delays to our clients, and considerable costs to ourselves, we have decided not to impose this charge at this time."
But Hong Kong Shippers Council executive Sunny Ho warned that some lines may still be collecting the fee. "Shippers should be careful with choice of shipping lines to use and give preference to those that are not collecting the charge," he said.
The levies would have amounted to US$800 per TEU and $1,000 per FEU bound for the US west coast and received after a specified date.
CMA CGM first suspended its surcharge on November 18, then reinstated it early last week, only to cancel it again on Wednesday. Likewise, Maersk announced it November 17 for November 18, but two days later postponed it.
Then on November 23, surcharge was back only to be postponed again on November 26.
"As you are aware, congestion is real and tangible, and a reality which will continue to impact the US west coast for the foreseeable future," Maersk said.
