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ASIA-EUROPE liners, which have won emergency approval for US$150 to $2,700 per box surcharges due to Red Sea rocketry from Yemen, are encountering opposition from shippers, reports New York's Journal of Commerce.
The emergency ocean freight surcharges levied on shippers is getting little, if any, regulatory oversight, the Federal Maritime Commission (FMC) has been told as both importers and exporters asked the agency to determine if they are really justified.
FMC has granted seven emergency waivers to container lines since before Christmas that enable them to immediately add surcharges without the 30-day notice required under US shipping law.
Surcharges are linked to the higher operational costs ocean carriers face as they continue to divert ships away from the Suez Canal to the long and costly Cape route around Africa.
Shippers, during a hearing called to discuss the surcharges, told the FMC they are concerned the surcharge waivers, some of which were approved the same day they were submitted, are allowing ocean carriers to recoup more than the actual increased costs of the longer transit.
Sarah Gilmore, a director for the Retail Industry Leaders Association, said the fees could result in tens of millions of other costs for retailers if the crisis persists for months.
FMC chairman Daniel Maffei told the hearing that with the sudden rerouting of ships, ocean carriers need to recoup higher operating costs, lest vessel services halt altogether. Still, Mr Maffei said carriers should ensure that surcharges are justifiable.
Peter Friedmann, executive director of the Agriculture Transportation Coalition (AgTC) said many US ag exporters sell cargoes with freight costs pre-paid. But ocean carriers are subsequently levying surcharges on exporters who cannot recoup them from their customers.
Jonathan Gold, vice president at the National Retail Federation (NRF), said his group's members have seen rates increase $1,500 to $3,000 per container due to the various surcharges. He said the burden is falling hardest on smaller volume shippers that can least absorb the higher costs.
https://www.shippingazette.com/menu.asp?encode=eng
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