Port Omissions and Surcharges

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Port Omissions and Surcharges

Mediterranean Shipping Company (MSC) released an announcement regarding voided sailings and congestion surcharges.

MSC will begin voiding Oakland starting week 28 in Asia due to port congestion. The first omission of Oakland for the Orient service will be for CAP SAN JUAN, voyage 128N, ETA Oakland, August 7, 2021. Carriers such as ONE and COSCO are also omitting Oakland beginning in July due to port congestion.

Hapag-Lloyd will apply a congestion surcharge of $350 per container for all international moves beginning August 1st.

The above-mentioned surcharge will be applied as follows:

1. All import moves in the U.S. where HL is responsible for the truck and/or rail move

2. All export moves in the U.S. where HL is responsible for the truck move

3. For Los Angeles (LAX)/ Long Beach (LGB), please note that the existing charge will remain as it is today with the amount increased to USD $350 per container

Alan Murphy, CEO of Sea-Intelligence, wrote that, “we are now in completely uncharted territory,” with the US leading the way. “Record US demand, record congestion levels, record high freight rates, record delays, record number of blank sailings, record low reliability, record capacity supply, record carrier profits, record low idle fleet, record high transit times,” were all currently in play, he wrote.

For two consecutive months, the Trans-Pacific trade lane has seen an improvement in carrier schedule reliability despite the congestions at both ends that disrupted vessel departures and vessel arrivals.

Across the globe, most ports are facing operational delays. Carriers continue to implement port swaps and port omissions to try to mitigate the impact and improve schedule reliability.

If you have any questions about your supply chain or real-time information about the market, please contact us today. We are available to discuss multiple carrier and service options to provide solutions for your supply chain. We proactively plan with our clients to navigate any challenges in the market today.