The Federal Maritime Commission issued an order on March 31, 2020 authorizing Commissioner Rebecca Dye to identify operational solutions to cargo delivery system challenges related to Coronavirus-19. The Order notes that “recent global events have only highlighted the economic urgency of responsive port and terminal operations to the effectiveness of the United States international freight delivery system. Given the Commission’s mandate to ensure an efficient and economic transportation system for ocean commerce, the Commission has a clear and compelling responsibility to actively respond to current challenges impacting the global supply chain and the American economy. Accordingly, the Commission has determined there is a compelling need to convene new Supply Chain Innovation Teams to address these challenges.”

In addition to authorizing Commissioner Dye as the Investigating Officer for Fact Finding No. 29 International Ocean Transportation Supply Chain Engagement, the Order allows her to form one or more FMC Supply Chain Innovation Teams to support the efforts.

“The United States depends on reliable international ocean freight delivery to support the economic security of our country. The maritime supply chain extends upstream and downstream from the ports and closely located logistics centers to American exporters and importers and keeping the system functioning is a priority of national importance. This initiative is an effort by the Commission to do everything we can to eliminate pressing problems in the freight delivery system,” said Commissioner Dye.

Commissioner Dye will engage key executives to participate on the Innovation Teams. These industry leaders will represent all facets of the ocean cargo system including public port authorities, marine terminal operators, beneficial cargo owners, ocean transportation intermediaries, liner shipping companies, drayage trucking companies, longshore labor representatives, rail officials, and chassis providers.

Commissioner Dye will commence her work by interviewing port directors to determine what steps they can identify to mitigate critical supply chain challenges. “Small and medium-sized shippers are especially affected by a lack of cargo storage space and are running out of options of where to send shipments once offloaded and I applaud this contribution. The Pacific Northwest Seaport Alliance has identified sites in their complex that can be used to stage cargo and containers off terminals. I applaud their initiative. We are calling on everyone engaged in moving ocean cargo to do what they can in this effort,” said Commissioner Dye.

Individuals wishing to provide information to Commissioner Dye may do so by writing to ff29@fmc.gov

The Panama Canal Authority (ACP) announced in a press release in January 2020 that it will adopt several measures in order to sustain water levels of the Panama Canal waterway. Due to changing rainfall patterns and historic low water levels at Gatun Lake, the main source of water for the waterway, the Panama Canal Authority began implementing a series of new measures beginning February 15 to sustain an operational level of water and provide reliability to customers while it implements a long-term solution to water. The three components of the measures are as follows: (1) a Freshwater Surcharge, (2) Booking System Adjustments, and (3) Vessel Visit Creation Fee (ETA Handling Fee).

According to the official tariff of the Panama Canal Authority, a new fresh water fee will be applied to all vessels over 125 feet in length overall (LOA) that transit through the Panama Canal, and will include the following components: A fixed fee of USD 10,000 per transit and a variable fee ranging from a minimum of 1 percent to a maximum of 10 percent of the vessel’s toll will be applied depending on Gatun Lake levels at the time of transit (i.e. if the lake has a higher level, the percentage will be lower and vice versa).

In response to the new measures, some carriers have updated their FMC tariffs to implement the Panama Canal Fresh Water Surcharge for all full container loads (FCL). Amounts vary by carrier. Several carriers have published amounts for USD 15/30/30/30 per 20ft/40ft/40HC/45ft, respectively.

The fresh water surcharge is separate from the Panama Canal Tolls. The Panama Canal Tolls is in the process of undergoing structure modifications that were approved by the Panama Canal Authority (ACP) in September 2019. The Panama Canal Tolls structure modifications will be implemented in stages: effective January 1st, April 1st, and finally May 1, 2020.

The previous Panama Canal Tolls structure had been in effect since October 1, 2017. To recover costs associated with these tolls many ocean carriers serving US ports have filed a Panama Canal Transit Fee in their FMC tariff for USD 337 per container.

For more information please visit: https://www.pancanal.com/eng/pr/press-releases/2020/01/13/pr686.html

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective April 15, 2020, including American President Lines (APL), CMA CGM, COSCO, Evergreen, Hapag Lloyd, Ocean Network Express (ONE), and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The April 15th GRIs will be the eighth GRI of 2020 for the East Asia/USA trade lane.

NOTE 1: COSCO GRIs apply on all cargo moving under service contracts only.

Some carriers updated their tariffs to include new General Rate Increases (GRIs) effective May 1, 2020, including American President Lines (APL), CMA CGM, COSCO, Evergreen, Hapag Lloyd, Hyundai Merchant, Ocean Network Express (ONE), and Yang Ming. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The May 1st GRIs will be the ninth GRI of 2020 for the East Asia/USA trade lane.

NOTE 1: COSCO GRIs apply on all cargo moving under service contracts only.