United States West Coast Port Congestion Surcharges (PCS) - UPDATE

As congestion at U.S. West Coast (USWC) ports has continued to grow and negotiations between International Longshore and Warehouse Union (ILWU) and Pacific Maritime Association (PMA) are deteriorating, a number of container lines operating between the U.S. and Asia announced congestion charges on all cargo entering/exiting US West Coast ports and Canadian Gateway ports on or after November 17, 2014.

Several major carriers have announced a US Port Congestion Surcharge (PCS) which may be applied in the event of any disruption to port operations. Initial reports are that the PCS will be around $800/$1000/$1125 per 20'/40'/40'HC. In the event these surcharges are inforced will need to pass these costs on to the responsible billing party immediately. At this stage FCL pricing indicates a surcharge of $10-20 w/m on LCL cargo depending on Carrier.

Port Congestion Surcharge - Effective 17/11/2014
Container Type Surcharge Level
W/M (Weight or Measure) $10 - $20.00 USD
20' ST $800.00 USD
40' ST $1000.00 USD
40' HC $1125.00 USD
45' $1266.00 USD

Carriers had held off on implementing these PCS fees; however, with multiple vessels at anchor and unable to unload, USWC congestion has disrupted carriers' service schedules and terminal operations, which have negatively impacted carriers operating costs and led to financial losses.

While a port strike or lockout have not occurred, the uncertainty created by the lack of a viable West Coast contract means that these PCS fees are likely to continue.

Resources:
http://www.joc.com/maritime-news/trade-lanes/trans-pacific/carriers-use-west-coast-surcharges-shore-losses_20141114.html

http://worldmaritimenews.com/archives/143401/carriers-to-add-charges-in-congested-us-ports/

http://www.fmc.gov/congestion-surcharges-11-2014/


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