West Coast Port Congestion Surcharges Rescinded

 In Breaking News, Industry Insider, Trans-Border Global Freight Systems, Inc.

Most steamship lines are now rescinding their previously announced Port Congestion Surcharges due to a determination by the FMC that the implementation attempt was potentially unlawful. This latest action is a result of the Shipping Act and the Federal Maritime Commission’s regulation which requires that the rules applicable to any given shipment shall be those in effect on the date the cargo is received by the carrier or its agent.

 

A carrier may only charge labor disruption surcharges if they have clearly defined the implementation and termination dates of the charge and the surcharge would only be applicable for cargo that has been tendered by a shipper at a port on or after the specified effective date.

 

Although it seems that shippers can breathe a sigh of relief for now, it is likely that we have not seen the last of this topic and extensive delays are continuing to cripple this portion of the US supply chain. We will continue to monitor this situation and keep you advised as any new details become available.

 

If you have any questions or if you need any additional information please contact us.