Tuesday, November 18, 2014

Some container lines adding congestion surcharge at West Coast ports

Starting Monday, some shipping companies added a surcharge to container rates to make up for increased costs associated with congestion at West Coast ports — which has worsened in the last two weeks due to worker slowdowns.

The new port congestion surcharges will reportedly range from $1,000 per-FEU through Hanjin Shipping and other lines on the Asia-to-U.S. West Coast trades from Nov. 17, and to $240 to $375 for exported containers through Evergreen Line and Hyundai Merchant Marine.

Blaine Calaway, vice president of sales at Calaway Trading, ships grains, forages and hay products through the Seattle and Tacoma ports destined for Asia as animal feed.

When he received multiple emails Friday from shipping companies announcing the surcharges, he said the impact of the slowdowns became even clearer to him.

He said import loads into the terminals from overseas can reach costs of about $1,500 per container.

"Then tack on $1,000," Calaway said, "that is cost to the consumers."

For more of the Seattle Times story: seattletimes.com



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