NVOCCs Can Mitigate Upcoming California Port Surcharges, NCBFAA Says

Non-vessel-operating common carriers should soon begin seeing the effects of the recently announced surcharges at two California ports (see 2111030027), the National Customs Brokers & Forwarders Association of America said in a Nov. 4 email to members. But the group also said non-vessel-operating common carriers have options to mitigate the charges.

The charges, announced last month, are meant to incentivize carriers to more quickly move dwelling containers at the Los Angeles and Long Beach ports, but were met with strong backlash from shippers and others (see 2110290012). This is because the charges will likely be passed down from vessel-operating common carriers attempting to “offset” the additional fees, NCBFAA said. NCBFAA said NVOCCs have “several options for mitigating the charge,” including revising their ​​negotiated rate arrangements and their NVOCC service arrangements with shippers or updating their tariffs.

Although the charges took effect Nov. 1, NCBFAA said NVOCCs should start seeing the fees Dec. 1 as ocean carriers comply with the 30-day waiting period for tariff rate increases under the Shipping Act. The association stressed that any changes to mitigate the charges by NVOCCs must also be “made in a form compliant with” the Shipping Act and Federal Maritime Commission regulations.