Lines secure GRIs with peak season surcharges
Peak Season Surcharges (PSS) for the Asia-North Europe and Asia-Mediterranean trades are mounting daily, and at the latest count there are 14 lines that have made announcements for PSS implementation in June on these trade lanes, PR News Service reports.
Many industry analysts, as well as some of the lines’ customers, are questioning the reasons for these surcharges when the European economy is no better, and arguably worse, than it was 12 months ago. The idea of a peak season for Europe imports from anywhere, let alone Asia, is far from reality.
As the latest round of peak season surcharges kick in, lines have also been announcing a spate of General Rate Increases (GRIs). Customers increasingly believe there is little difference between the PSS and GRI and it is only a plan by some lines to gain as much financial advantage as possible from what remains a depressed market.
One major shipping line executive explained to Cargonews Asia last week. “The implementation timeframe for a GRI is presently 30 days, but for a PSS, the timeframe is only 14 days. Based on that, shipping lines that have announced GRIs for June 1 have to face a 30-day period before actual implementation, but some lines can implement that increase through a PSS within 15 days,” he said.
According to some shipping executives, the whole equation of GRIs and PSSs is very involved and the latest bout of PSSs can be related back to the planned GRIs in May, which generally have not matched up to expectation for the lines.
In simple terms, those GRIs planned for May on the Asia-North Europe and Asia-Mediterranean trades only worked for a matter of days, and so lines are obviously seeking ways to ensure they claw back as much as possible in what is an upcoming period of economic uncertainty in Europe.
A shipping executive explained: “A PSS is a simple theoretical way of attempting, on a short term basis, to attain what the planned GRI failed to achieve. It is that simple.”
Asia-North Europe PSS (US$)
APL – $300/TEU and $600/FEU
China Shipping – $300/TEU and $600/FEU
CMA-CGM – $350/TEU and $700/FEU
Cosco – $350/TEU and $700/FEU
Hanjin – $350/TEU and $700/FEU
HMM – $350/TEU and #700/FEU
Maersk – $350/TEU and $700/FEU
MSC – $350/TEU and $700/FEU
NYK – $250/TEU and $500/FEU
OOCL – $300/TEU and $600/FEU
Yang Ming – $350/TEU and $700/FEU
Zim – $375/TEU and $750/FEU
Asia-Med PSS (US$)
APL – $300/TEU and $600/FEU
China Shipping – $300/TEU and $600/FEU
CMA-CGM – $350/TEU and $700/FEU
Cosco – $300/TEU and $600/FEU
Evergreen – $300/TEU and $600/FEU
Hanjin – $350/TEU and $700/FEU
HMM – $350/TEU and $700/FEU
Hapag-Lloyd – $350/TEU and $700/FEU
Maersk – $350/TEU and $700/FEU
MSC – $350/TEU and $700/FEU
NYK – $250/TEU and $500/FEU
OOCL – $300/TEU and $600/FEU
Yang Ming – $350/TEU and $700/FEU
Zim – $375/TEU and $750/FEU