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Port Congestion Surcharges Released

Contractual Labor agreements between the International Longshore Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) will be ending on June 30, 2014. Negotiation between the two parties have been ongoing with the expectation of reaching a new agreement without a work stoppage.

In the event that a new agreement cannot be reached by June 30, 2014, it is anticipated that a lockout will occur resulting in the disruption of port operations. Per TransGroup's previous Industry Alert, all Carriers have proceeded to file Port Congestion Surcharges that will be applicable should port operations become affected due to these events.

Please be advised of the carrier congestion surcharges as follows; import and export. Effective date July 1, 2014.

LCL
US $25 per CBM/1000 Kg

FCL
US $800/20'
US $1000/40'S
US $1125/40'H
US $1266/45'

If there is no labor unrest, NO congestion surcharges shall apply. If there is labor unrest (strike, work stoppage, slow-down) then port congestion surcharges shall be enacted. Once enacted, the port congestion surcharge will remain in effect until formally withdrawn by each individual carrier. TransGroup will only charge these congestion surcharge fees at cost as received from the ocean carriers.

Emergency routings via Canada and Mexico are being explored. Please be warned that carriers will also install re-routing charges to re-route West Coast cargo via US East coast, Canada, or Mexico.

TransGroup will continue to monitor the labor negotiations in hopes of a solution prior to the contact expiration. If you have any questions please contact your local TransGroup Station.

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