Supply Chain News / Ocean / Ports

Carriers Warn of Port Congestion Charges

Forwarder A.N. Deringer has advised shippers and consignees that ocean carriers have begun quoting rates as much as 50 percent higher than August 2012 levels for mini-landbridge service.

Cargo will be subject to port congestion charges at U.S. and Canadian ports if any labor unrest occurs, said Deringer. This includes strikes, lock-outs, work stoppages, or slowdowns. “The charge will only be instituted in the case of a work disruption; however, the International Longshoremen’s Association (ILA) has voted in favor of a strike if an agreement is not reached by the contract’s expiry on September 30,” noted Deringer.

The most common congestion charges for dry and reefer shipments are quoted below as $800 for a 20-foot container, $1,000 for a 40-foot standard container, $1,125 for a high-cube 40-foot container and $1,266 for a 45-foot container.

Complicating matters, some shippers are diverting cargo to the U.S. West Coast where the Ports of Los Angeles and Long Beach are in contract negotiations with the Office Workers Unit. The union and management negotiating the contract issued a joint statement that has been viewed as “promising.”

On the Great Lakes, where ports are also represented by the International Longshoremen’s Association, the ILA’s John Baker notes the Great Lakes District Council is under a separate contract which expires at the end of the year. Baker said the Great lakes District Council has sent out notices to carriers that it wants to begin talks before the end of the Great Lakes shipping season. Though very little container traffic moves on the Great Lakes compared with the East and Gulf Coasts, no disruptions are anticipated.
 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Five Wearable Manufacturing Technologies of the Future

Video applications, Employee Monitoring, Field service, Plant monitoring, Improving employee safety

Podcasts

Assurance of Supply: A Top Concern for Manufacturers

Every manufacturer has an assurance of supply problem to some extent due to the complexity of global sourcing. For years, manufacturers were blessed with high margins but margins have grown paper thin. You can’t fill up your distribution centers with excess inventory – not only is there a cost factor but the pace of business and consumer buying trends causes goods to quickly turn obsolete. Assurance of supply provides the speed and agility that is essential to being able to compete in today’s market.

 

Speaker info: Diane Palmquist, VP Manufacturing Industry Solutions

                                         

More Podcasts

World Trade 100 Magazine

wt october 2014

2014 October

Check out the October 2014 edition of World Trade WT100, featuring our cover story: Logistics Drives Site Selection, plus much more!

Table Of Contents Subscribe

Transportation Capacity

As peak season has gotten underway, what is your experience with transportation capacity?
View Results Poll Archive

WT100 STORE

world-class-warehousing.gif
World-Class Warehousing and Material Handling, 1st Edition

Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

Use our interactive maps to locate service providers across North America.Interactive Map

Logistics Development Partners 

IWLA Members