FMC Speaks out against New Port Congestion Surcharge

Carriers announcing significant surcharge amounts has been has been the talk of the trade.  And from what I am hearing, businesses are NOT happy.  Lucky for them, the Federal Maritime Commission is on their side as stated  in a recent  International Trade Today publication Vol. 11, No. 225,

“One FMC commissioner has already come out against the surcharges. Commissioner William Doyle released a statement on Nov. 19 saying surcharges should not be imposed “under any circumstance now or into the foreseeable future,” especially given the hand that steamship lines played in creating the congestion problem. Meanwhile, the slowdown by workers of the ILWU at the Ports of Seattle, Tacoma, Oakland, and Los Angeles/Long Beach shows no signs of abating, according to a release by the Pacific Maritime Association. “In some ports, productivity remains 30 percent or more below normal, as a result of orchestrated ILWU maneuvers,” said the PMA, which is on the opposing end of West Coast port negotiations (click here). The longshore union is “refusing to agree” with a PMA-proposed temporary contract extension that would “give employers recourse for the ILWU slowdowns that are continuing,” said PMA. The ILWU will take a break in “big table” talks through the end of Thanksgiving weekend, so negotiators will only discuss “limited issues” until Dec. 2, it said.”