TSA Carriers Suspend Congestion Surcharge, Focus on Dec. 15 GRI

According to multiple media sources, carrier members of the Transpacific Stabilization Agreement (TSA) have agreed to suspend their focus on Congestion Surcharges that would impact shipments transitting U.S. West Coast ports. Instead, the group has chosen to emphasize a proposed General Rate Increase (GRI) of USD 1,000 per 40’ from all Asian origins to all North American destinations, effective December 15.

As relayed by Mario Cordero, Chairman of the Federal Maritime Commission (FMC), TSA members have made “individual commitments…to postpone port congestion surcharges into 2015. During this time, commission staff will further address with the carriers our concerns for the lawfulness, fairness and adequacy of notice of implementation.”

In the meantime, the TSA has recommended that its carrier members stand firm on the implementation of the December 15 GRI. In justifying the increase, the group cites “stronger than expected holiday traffic, related service demands…[and] forecasts of continued market momentum through the remainder of the year…[which] is likely to extend into January via gift cards and post-holiday sales promotions.”

Current TSA members include APL, China Shipping, CMA, COSCO, Evergreen, Hanjin, Hapag-Lloyd, Hyundai, “K” Line, Maersk, MSC, NYK, OOCL, Yang Ming and ZIM.

Walker will continue to monitor this situation and keep our customer informed of the latest developments. If you have questions or concerns related to specific shipments, please feel free to contact your Walker representative.