Maersk Line formally announced Friday it will begin a pilot test of imposing a $10-per-container fee on U.S. export containers that do not arrive at their load ports starting on May 1.
The fee applies only to specific exempt commodities, such as wastepaper and scrap products, shipped via the ports of Los Angeles and Oakland for export to Asia on the carrier’s TP-8 service.
The carrier previously said it will also pay exporters compensation of $10 per container for export containers that have been booked for passage, but which it rolls, or bumps off a specific booked passage. The carrier's announcement on Friday did not mention this part of the pilot test.
The carrier said it is testing a no-show fee on exempt commodities, which typically ship in large lots, because they have an historical pattern of higher percentages of no-show bookings, which can range upwards of 30-40 percent on any given week.
During this limited scope pilot, which at this time covers only the single TP-8 service, Maersk Line will assess a $10 fee for each container booked within this commodity grouping that is not tendered to the carrier for loading, or advised of a change, at least 72 hours prior to cutoff.
Maersk Line said that because these commodities are typically booked in large quantities for any given vessel, it hopes the cumulative total of any fees against specific bookings will be significant enough to change the pattern of no-show behavior across what are typically the lowest value exports from North America.
Maersk line noted that it has a number of pilots currently underway in other geographical regions globally, where tariffs have been set at $100 per container for no show cargo.
Maersk Line said it expects that no show fees for general cargoes will likely need to settle at the higher level than what could be envisaged to impact no-show behavior for exempt commodities in the U.S. export trades.
The fee applies only to specific exempt commodities, such as wastepaper and scrap products, shipped via the ports of Los Angeles and Oakland for export to Asia on the carrier’s TP-8 service.
The carrier previously said it will also pay exporters compensation of $10 per container for export containers that have been booked for passage, but which it rolls, or bumps off a specific booked passage. The carrier's announcement on Friday did not mention this part of the pilot test.
The carrier said it is testing a no-show fee on exempt commodities, which typically ship in large lots, because they have an historical pattern of higher percentages of no-show bookings, which can range upwards of 30-40 percent on any given week.
During this limited scope pilot, which at this time covers only the single TP-8 service, Maersk Line will assess a $10 fee for each container booked within this commodity grouping that is not tendered to the carrier for loading, or advised of a change, at least 72 hours prior to cutoff.
Maersk Line said that because these commodities are typically booked in large quantities for any given vessel, it hopes the cumulative total of any fees against specific bookings will be significant enough to change the pattern of no-show behavior across what are typically the lowest value exports from North America.
Maersk line noted that it has a number of pilots currently underway in other geographical regions globally, where tariffs have been set at $100 per container for no show cargo.
Maersk Line said it expects that no show fees for general cargoes will likely need to settle at the higher level than what could be envisaged to impact no-show behavior for exempt commodities in the U.S. export trades.