CMA CGM delays the imposition of the US East Coast container surcharge
Ocean container shipping company CMA CGM has delayed an important US surcharge and instead plans to implement two related surcharges simultaneously later this month.
On Monday, the French liner operator postponed a peak season surcharge of $1,500 per unit on shipments from the Indian subcontinent, the Gulf region of the Middle East, the Red Sea and Egypt to the eastern United States and Gulf Coast from Jan. 1 to Jan. 15.
While peak season surcharges are not uncommon, according to FreightWaves, negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Union (USMX) on a new agreement are expected to resume soon, thus delaying the surcharge this time.
While the two sides have not officially confirmed the resumption of talks, sources said the two sides have been in informal talks since ILA pulled out of the talks in November.
The Middle East to the US surcharge is also notable because CMA CGM is reportedly the only major container shipping company to continue operating in the Red Sea despite Houthi attacks on merchant vessels in Yemen, while other liner companies have shifted services to longer, more expensive voyages linking Asia to Europe, the Mediterranean and the United States around the Horn of Africa.
Cma CGM did not immediately respond to a request for comment.
At the same time, CMA CGM Marine said it would impose a peak season surcharge on containers shipped from the Mediterranean to ports in the eastern United States and Gulf Coast from Jan. 18.
The surcharge is $1,300 per 20-foot dry cargo container, $2,000 per 40-foot dry cargo container and $2,500 per 45-foot dry cargo container.
For reefer containers, the surcharge is $1,300 per 20-foot reefer container and $2,500 per 40-foot and 45-foot reefer container.
The surcharge applies to goods shipped from the Mediterranean ports of Marseilles Fors in France, Portugal, Italy, Algeciras, Valencia, Barcelona, Sagonto and Vigo in Spain, and Morocco.
The Mediterranean surcharge does not apply to over-sized and oversized cargoes or pre-dismantling cargoes that require payment prior to discharge.
"The Panama Canal Authority has launched a new booking system, Long Term Accommodation Allocation (LoTSA), to regulate canal transit bookings. The system, which will come into effect from 1 January 2025, has resulted in a significant increase in operating costs for CMA CGM, "the carrier said in an announcement.
South America West Coast to South America East Coast route and South America West Coast to Guyana North Brazil route charges the same. These will take effect on January 5.
On Monday, the French liner operator postponed a peak season surcharge of $1,500 per unit on shipments from the Indian subcontinent, the Gulf region of the Middle East, the Red Sea and Egypt to the eastern United States and Gulf Coast from Jan. 1 to Jan. 15.
While peak season surcharges are not uncommon, according to FreightWaves, negotiations between the International Longshoremen's Association (ILA) and the United States Maritime Union (USMX) on a new agreement are expected to resume soon, thus delaying the surcharge this time.
While the two sides have not officially confirmed the resumption of talks, sources said the two sides have been in informal talks since ILA pulled out of the talks in November.
The Middle East to the US surcharge is also notable because CMA CGM is reportedly the only major container shipping company to continue operating in the Red Sea despite Houthi attacks on merchant vessels in Yemen, while other liner companies have shifted services to longer, more expensive voyages linking Asia to Europe, the Mediterranean and the United States around the Horn of Africa.
Cma CGM did not immediately respond to a request for comment.
At the same time, CMA CGM Marine said it would impose a peak season surcharge on containers shipped from the Mediterranean to ports in the eastern United States and Gulf Coast from Jan. 18.
The surcharge is $1,300 per 20-foot dry cargo container, $2,000 per 40-foot dry cargo container and $2,500 per 45-foot dry cargo container.
For reefer containers, the surcharge is $1,300 per 20-foot reefer container and $2,500 per 40-foot and 45-foot reefer container.
The surcharge applies to goods shipped from the Mediterranean ports of Marseilles Fors in France, Portugal, Italy, Algeciras, Valencia, Barcelona, Sagonto and Vigo in Spain, and Morocco.
The Mediterranean surcharge does not apply to over-sized and oversized cargoes or pre-dismantling cargoes that require payment prior to discharge.
"The Panama Canal Authority has launched a new booking system, Long Term Accommodation Allocation (LoTSA), to regulate canal transit bookings. The system, which will come into effect from 1 January 2025, has resulted in a significant increase in operating costs for CMA CGM, "the carrier said in an announcement.
South America West Coast to South America East Coast route and South America West Coast to Guyana North Brazil route charges the same. These will take effect on January 5.
