Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

FMC Commissioner Doyle hits out at congestion surcharges

FMC Commissioner Doyle hits out at congestion surcharges
US Federal Maritime Commissioner William Doyle says lines should not be adding congestion surcharges under “any circumstance”.

In a statement on amendments to the Transpacific Stabilization Agreement (TSA) and port congestion Doyle said that lines had forced ports around the world to react to their business model of building larger vessels.

He noted that only five years ago an 8,000 teu vessel calling at a US port was an uncommon event, but today vessels of up to 14,000 teu were calling at US West Coast ports. While US ports were spending billions of dollars to upgrade their facilities, “The larger ships have come onto the market quicker than the ports can react by way of construction and upgrading, thereby, significantly exacerbating port congestion by unloading ever larger volumes of containers.”

As congestion has worsened with labour unrest issues in the US member lines of the TSA have started rolling out congestion surcharges of up to $1,000 per feu from Asia to the US.

“I believe the ocean carriers should not be adding surcharges for port congestion under any circumstance now or into the foreseeable future for imports or exports.  Indeed, the ocean carriers have a substantial hand in the formation of port congestion matters,” he stated.

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish
TMSRPan21-22 Category Promo 600_600-resize
Read Now

The 21st Edition of Panama Maritime Review

"We will invest in digital transformation, exploring innovative ways in which we can maxinimise the Canal's capacity to provide value guarentee quality of service to our customers."

Ricaurte Vásquez Morales, Panama Canal Administrator

Read Panama Maritime Review 2021/22 to find out more.

TMSRPan21-22 Category Promo 600_600-resize