West Coast Port Congestion Surcharges Take Effect
Several major steamship lines recently announced port congestion surcharges will take effect Nov. 17 for West Coast ports, amid a continuing slowdown by the International Warehouse and Longshore Union and the resumption of a strike by drayage truckers at the Port of Los Angeles/Long Beach. In an alert posted to its website, Evergreen Line told its customers that they are being “forced to trigger congestion charge collection” due to costs associated with disruptions with “no foreseeable relief in sight” (here). Several other steamship lines joined Evergreen with similar announcements, including Mediterranean Shipping Company (here) and Hanjin (here). Evergreen (here) and Hyundai (here) also announced congestion surcharges on outbound cargo. An ILWU-run news website called the move a “money grab” that “has nothing to do with labor negotiations.”
On import cargo, surcharges will be levied at $800 per 20’ container, $1,000 per 40’ container, $1,125 per 40’ high cube, and $1,266 per 45’ high cube. For lines imposing export surcharges, the amount will be $240 per 20’ container, $300 per 40’ container, and $375 per 45’ container. The logistics blog Great World said CMA-CGM and NYK also sent out alerts to their customers that they will begin imposing surcharges on import shipments (here). Hanjin’s surcharge also applies to U.S.-bound shipments discharged at Canadian ports. The Federal Maritime Commission has previously warned the industry about congestion surcharges (see 14060214). The agency didn't immediately return a request for comment.
At the same time, several steamship lines announced service changes to account for congestion at West Coast ports. Hanjin suspended Chicago routing to the Pacific Northwest, as well as the Pacific Northwest reefer service and inbound and outbound operations to and from Minneapolis. Evergreen announced its China-Japan-U.S. East Coast service will no longer call on West Coast ports until further notice (here).
The moves come as the ILWU continues its slowdown of operations at Ports of Seattle, Takoma, and Los Angeles/Long Beach (see 1411060025 and 1411100015). Adding to congestion, drayage truckers on Nov. 13 resumed a strike that had been on hold since July. According to the advocacy group Justice for Port Truck Drivers, the strike over drivers’ classification as independent contractors has spread to five major drayage companies at the port (here). The drivers had been picketing at several terminals, causing some delays, according to the Long Beach Press-Telegram (here). Justice for Port Drivers said the drivers agreed to take down the picket lines after meeting with Los Angeles Mayor Eric Garcetti on Nov. 14.