Carrier Surcharges May Show Collusion, Federal Mediation for West Coast Port Disruptions Needed, Says NCBFAA

The recent congestion surcharges announced by some major carriers may indicate illicit collaboration, said the National Customs Brokers & Forwarders Association of America in a letter to several government officials. NCBFAA Chairman Geoffrey Powell wrote to several government officials, including Federal Maritime Commission Chairman Mario Cordero and Commerce Department Secretary Penny Pritzker, noting that the addition of "identical surcharges" raises the "question of whether this is unlawful collusive behavior." The surcharge announcements also fall outside of Shipping Act requirements and it's likely that "much or all of any congestion is attributable to their own conduct and inefficiencies," Powell said. Several major carriers have recently imposed congestion surcharges (see 1411210018).

The NCBFAA also became the latest to request the federal government to step in and help with labor negotiations affecting the West Coast ports (see 1411260006) and 1411070010). Powell asked that the government appoint a mediator to help "resolve the outstanding issues that separate labor and the ocean carriers." Without the government's assistance, "the unsettled ocean shipping situation together with its costly surcharges being imposed on US importers will be extraordinarily disruptive and result in significant economic damage to large and small companies alike," said the NCBFAA.

Email ITTNews@warren-news.com for a copy of the letter.