OOCL will apply a fee due to congestion on the US West Coast

In 2020, OOOCL will apply a fee due to congestion on the US West Coast

Orient Overseas Container Line (OOCL) announced on Tuesday 2020 that it will begin charging a $350 per dry container “emergency intermodal surcharge” at US West Coast ports on January 1, becoming the latest carrier to apply fees to alleviate congestion and container imbalances.

The surcharge is applied to all truck deliveries from the ports of Los Angeles, Long Beach, Oakland, Seattle, and Tacoma, with the exception of moves when a shipper has specified a specific trucker. Although Southern California has been the epicenter of Asia imports during this extended peak season, the surcharge’s application at other major West Coast ports demonstrates growing anticipation.

The additional surcharge comes at a time when eastbound spot rates to the West Coast are at an all-time high. CMA CGM has extended its $350 emergency intermodal surcharge to all containers moving out of the Los Angeles-Long Beach port complex for local delivery and to area rail ramps, in addition to interior destinations.

CMA CGM has extended its $350 emergency intermodal surcharge to all containers moving out of the Los Angeles-Long Beach port complex for local delivery and to area rail ramps, in addition to interior destinations.

Congested marine terminals, long container dwell times at terminals, long truck wait times at gates, chassis shortages, and distribution facilities full to capacity continue to plague the Southern California supply chain.

Because of the congestion, eastbound trans-Pacific ocean reliability fell to its lowest level since data collection began in 2011. According to the Global Liner Performance report from Sea-Intelligence Maritime Analysis, vessel on-time performance in the Asia–North American trade fell to 32.1 percent to the West Coast and 34.5 percent to the East Coast last month.

Source: www.joc.com