HMM implements equipment imbalance surcharge for PNW reefer exports
Hyundai Merchant Marine announced implementation of a surcharge on all refrigerated containers originating in the local PNW market that are destined to Asia, the Indian Sub-continent and Middle East, the Company press release said.
The new Equipment Imbalance Surcharge will be assessed based on $300/unit beginning November 15, 2012.
The PNW market has an extremely small import market for live reefer cargo and, because there is almost no natural flow of reefers into the area from Asia, refrigerated containers must be repositioned into the area to satisfy the peak demand. Reefer containers are sourced by HMM at great expense by one of three methods:
1) Containers are repositioned as empties from the U.S. Midwest, under which circumstances HMM must pay the rail and intermodal fuel costs,
2) Units are repositioned as empties from Asia – requiring HMM pay stevedoring costs in Asia and the U.S., or
3) Equipment is imported as dry (non-operating) reefers which produces 15% less revenue than a standard dry container.
HMM’s actual cost for employing any of the aforementioned methods is well in access of $300.00 per unit. We are asking our valued partners to share in the expense of providing the refrigerated equipment needed - particularly during this time of year when supply is inadequate to meet export demand.