FMC warns lines over congestion surcharges

The Federal Maritime Commission is reminding ocean carriers that they cannot impose congestion surcharges without giving customers due notice. 

Lines have started to announce levies to compensate for delays being experienced in many ports, including Los Angeles and Long Beach where latest data from the Marine Exchange of Southern California shows that eight containerships were at anchor outside the two Californian ports on Monday afternoon local time, waiting to berth.

The FMC said in a statement that it was receiving numerous inquiries regarding the congestion surcharges for “labour unrest” being implemented by ocean carriers as announced in tariff rules required to be published under the Shipping Act of 1984 and the commission’s regulations.

“Unless done pursuant to a waiver or exemption, any tariff rule (including surcharges) of a common carrier that results in an increased cost to a shipper may not be effective earlier than 30 days after publication,” the FMC stated.

“Many carriers previously published in their tariffs advance or conditional notice of an intention to implement surcharges in the event certain conditions are experienced. All such carrier tariff rules, however, must be clear and definite as to the implementation and termination of the surcharge based upon specific criteria related to ‘labour unrest’.”

The Shipping Act and the FMC’s regulations require that the rules applicable to any given shipment shall be those in effect on the date the cargo is received by the common carrier or its agent, the agency said.

“Thus, if any labour disruption were to occur at a port after cargo has been tendered by a shipper, a carrier may only lawfully charge the rates in effect on the day the cargo is tendered.”

The FMC’s warning followed an announcement over the weekend from the Transpacific Stabilization Agreement, which said that from Monday, a number of its members planned to implement a congestion surcharge of as much as $1,000 per 40 ft container.

“Beginning November 17, carriers will assess and collect their respective charges on an individual basis for eastbound and westbound cargo,” the TSA said.

The 15 member carriers said that the delays meant they were facing increased costs for blanked sailings, skipped port calls, speeding up vessels and chartering extra tonnage and equipment to maintain schedules.

Terminals in Seattle and Tacoma were reporting 40% to 60% productivity reductions, while vessels continue to queue outside Los Angeles and Long Beach, with productivity at one point slipping to a low of 11 containers per hour.

The TSA also said that Oakland had reported work slowdowns and disruption involving equipment operators.

“Carriers are mindful of the potential impacts of added charges on their customers and are monitoring the situation closely,” said TSA executive administrator Brain Conrad said:

The FMC said it would continue to review congestion surcharge rules published in carrier tariffs and was gathering information from lines regarding implementation of these surcharges.

FMC warns lines over congestion surcharges

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