Asian lines may be hit by US port congestion charges

The lines are reportedly preparing for possible delays in US ports by announcing a “port congestion surcharge” in the event of a slowdown or work stoppage at any US port, ahead of the labour unrest threatened by the International Longshoreman's Association (ILA), if an agreement is not reached by the end of the month, Seatrade Asia online reports.

As the height of the peak season approaches, OOCL is preparing a surcharge of $600 per teu, $750 per feu and $950 per 45-foot container that it will levy if labour unrest causes hold-ups. NYK has reportedly been suggesting a levy of $1,000 per feu on cargo from Asia, India and Australia. Maersk is charging $800 per teu, $1,000 per feu, and $1,266 per feu for all shipments to and from the US and Canada. Cosco is matching that while Hanjin is charging $800 per teu and $1,000 for other sizes.

The levy will be applied in the event of a slowdown or stoppage in “any” US port. If the East Coast ports shut down, volumes will likely be diverted through the West Coast, which will cause congestion at the already busy ports there. In other words, the lines stand to gain from either scenario panning out whether shippers get their boxes stuck on the East Coast or are slow to get off the ship in the West.