Update: Transpacific Carriers Postpone Congestion Surcharge (Again)

According to multiple media outlets, carrier members of the Transpacific Stabilization Agreement (TSA) have elected to postpone a planned Congestion Surcharge on cargo bound for the U.S. West Coast until further notice. This is the second time in two weeks that the surcharge – widely announced as USD 1,000 per 40’ and slated for implementation on Nov. 17, then on Nov. 26 – has been suspended. Factors cited as contributing to decision include market confusion, pushback from shippers, a public challenge from the National Customs Brokers and Forwarders Association of America (NCBFAA), and ongoing scrutiny by the Federal Maritime Commission (FMC).

Some industry experts have suggested that even this latest postponement remains temporary, with carriers intent on raising rate levels in the face of the worst West Coast congestion in years. Others contend that continued cancellation is a signal that carriers have turned their focus to a proposed General Rate Increase (GRI) of the same amount, scheduled for December 15.

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