COSCON Issues Port Congestion Tariffs for Transpacific Trade

COSCON: Tariff Rule No. 023-005 Applicable for Labor-Related Disruptions in North America

COSCON has informed that the Tariff Rule No. 023-005, Port Congestion Surcharge (PCT), will apply to all cargoes originating from, or destined to North America, and impacted by possible labor-related disruptions beyond carrier’s control.

The surcharge reflects COSCON’s current estimate of additional costs that will result from labor-related disruptions, including increased vessel, terminal, container, fuel and administrative costs.

The tariff rule was filed with FMC on April 15, 2014 and is effective from May 15, 2014.

The Rule stipulates as follows: It is recognized that a strike, lockout, work stoppage, work slowdown or other labor-related disruption to operations at any U.S. /Canada Port (collectively, labor unrest) will cause congestion at U.S. /Canada ports.

Accordingly, notwithstanding any other provision of this tariff, in the event of labor unrest, cargo received by the carrier or its agent after the effective date of this rule and scheduled to arrive at any U.S. /Canada (West Coast, East Coast, or Gulf Coast) on or after May 15, 2014 shall be subject to the following congestion charge:

  •  $800 per 20′ container
  •  $1000 per 40′ container
  •  $1125 per 40′ High Cube container
  •  $1266 per 45′ High Cube container

Implementation of the charge for cargo discharging at any port, not limited to ports under strike action, will be triggered by the carrier’s subsequent announcement in this rule stating that congestion now exists at these ports.

In the event no labor unrest occurs, this charge shall not be applicable.

Once labor unrest has occurred, this charge shall continue to be assessed until such time as carrier provides notice in this tariff that the impact of the labor unrest on its operations and those of any affected port(s) has ended.

This charge shall be payable on a freight collect basis, although if agreed by carrier and shipper, it may be paid on a prepaid basis.

Press Release; July 1, 2014


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