WASHINGTON, D.C. (BRAIN) — Shipping companies that had been levying hefty congestion fees on ships headed to ports in Long Beach and Los Angeles have been temporarily suspended after the U.S. Federal Maritime Commission (FMC) raised concerns.
A raft of complaints were filed with the commission this week and its chairman, Mario Cordero, voiced concern noting whether the congestion charges were justified and whether “labor unrest” was a solid enough basis to levy them.
In a press release, the commission also said such surcharges should not apply to shipments already in transit. “Unless done pursuant to a waiver or exemption, any tariff rule (including surcharges) of a common carrier that results in an increased cost to a shipper may not be effective earlier than 30 days after publication,” the commission said.
The FMC this week posted a notice on its website advising that the surcharges “must be clear and definite as to the implementation and termination of the surcharge based upon specific criteria related to labor unrest.”
The FMC is an independent federal agency responsible for regulating the U.S. international ocean transportation system for the benefit of U.S. exporters, importers and U.S. consumers.
According to FMC regulations, rates should be those in effect on the date the cargo is received by the carrier or the carrier’s agent.
Scarbrough International Ltd., a logistics and freight forwarding service, had sent out a bulletin to its clients last Friday notifying them that container loads were getting hit with new fees—$800 per 20-foot container, $1,000 for a 40-foot container and $1,266 for larger containers due to delays.
In addition, carriers were implementing an additional $100 fee per 40-foot container on carrier-to-door deliveries. And suppliers will see a general rate increase take effect Dec. 15 for shipments from Asia, Scarbrough said in its bulletin.
Scarbrough, in a release Wednesday, noted that it had helped its customers file complaints with the federal agency.
Nonetheless, a variety of issues have led to delays at the West Coast’s two ports of entry in Southern California — ongoing labor disputes, larger container ships, a rebounding U.S. economy, and a variety of transportation issues that delay movement of containers from the ports to Southern California warehouses and trucking terminals. Some ships have been idling outside the ports for more than eight days waiting to unload.
The FMC, however, has warned shippers that it is reviewing so-called congestion charges and is gathering information on how those surcharges were implemented. “That’s the threshold question. That’s the interesting question we at the FMC have to look into. Our staff is looking into whether there’s a trigger mechanism that is legitimate to even apply the surcharges,” said Cordero, who was a former commissioner at the Port of Long Beach.
