It seems like extra surcharges are becoming the trend in response to the challenges being faced by shippers in many parts of the world. SoCal harbor commissioners for the ports of Los Angeles and Long Beach “unanimously approved a plan to penalize ocean carriers with a $100 surcharge, compounding daily, for containers that sit too long on marine terminals in an effort to clear backlogs,” according to FreightWaves. Meanwhile, European shippers are similarly experiencing “phenomenal” surcharges in the midst of reportedly low water levels, based on a recent article by The Loadstar.
And, as if the congestion problems at some major Chinese ports weren’t enough, a pilot shortage is further increasing vessel traffic and port congestion along the Yangtze River.
The situation at California ports will continue to be dynamic for some time. On the horizon is how “the expiration of about 15,000 West Coast dockworkers’ contracts next summer could throw a wrench in plans to clear the backlogs at the two ports that both rank in the bottom 25 of the World Bank and IHS Markit’s 351-member Container Port Performance Index,” according to Supply Chain Brain. Meanwhile, the U.S. Department of Transportation (USDOT) is partnering with the state of California in an effort to speed up portside and warehousing infrastructure projects, according to JOC.
To learn more about this week’s top news in international shipping, check out the following article highlights: