Volume 25, Number 9
September 3, 2021
Oakland, California
SIGNALS™ provides detailed information on the regulations and activities of the US Federal Maritime Commission (FMC), and related developments in the ocean freight industry. For past issues, please consult our index.

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Signals™ Headlines - September 3, 2021

Commission Questions Ocean Carriers About Surcharges

The U.S. Federal Maritime Commission (FMC) has launched an expedited inquiry into the timing and legal sufficiency of ocean carrier practices with respect to certain surcharges. Eight ocean carriers are being asked to provide the Commission’s Bureau of Enforcement (BoE) with details about congestion or related surcharges they have implemented or announced. BoE has required these ocean carriers to provide details that confirm any surcharges were instituted properly and in accordance with legal and regulatory obligations.

This action was taken in response to communications received by the FMC from multiple parties reporting that ocean carriers are improperly implementing surcharges. The ocean carriers contacted are CMA CGM, Hapag-Lloyd, HMM, Matson, MSC, OOCL, SM Line and Zim Line. Ocean carriers are subject to specific requirements related to tariff changes or rate increases, including providing a 30-day notice and ensuring that published tariffs are clear and definite. In reviewing ocean carrier responses, the FMC will determine if surcharges were implemented following proper notice; if the purpose of the surcharge was clearly defined; if it is clear what event or condition triggers the surcharge; and is it clear what event or condition has been identified that would terminate the surcharge. The Commission can initiate enforcement actions for improperly established tariffs.

FMC Proposes Requiring Cruise Lines Provide Refunds for Cancelled or Delayed Voyages

The U.S. Federal Maritime Commission (FMC) seeks public comment on a proposed rule to amend its regulations governing non-performance by Passenger Vessel Operators (PVO/cruise lines) and establishing new requirements for when cruise passengers should be provided refunds for cancelled or delayed voyages.

The proposed changes are outlined in a Notice of Proposed Rulemaking (NPRM) issued by the Commission under its FMC Docket No. 20-15. Specifically, the Commission proposes that non-performance be defined as cancelling a voyage or delaying a voyage by three or more calendar days if a passenger elects not to embark on a delayed or substituted voyage offered by a PVO. The Commission also proposes to change its regulations to allow passengers of delayed or cancelled voyages to make direct claims against financial responsibility instruments, such as bonds, maintained by PVOs, subsequent to the passenger’s unsuccessful attempt to receive a refund directly from the PVOs. Finally, the Commission is proposing that all fees, including ancillary fees, paid by a passenger to a PVO be eligible for a refund.

Public comments on these proposed changes may be submitted via email to secretary@fmc.gov and should include the subject line: “Docket No. 20-15, Comments on PVO Financial Responsibility Rulemaking.” Comments may be viewed at the FMC’s online reading room under the link for FMC Docket No. 20-15. The Commission will vote again to issue a Final Rule before any changes to its regulations take effect. This proposed rulemaking is the product of recommendations made to the Commission in April 2020 by Commissioner Louis E. Sola resulting from his work as a Fact Finding Officer for Fact Finding 30 Investigation.

Transpacific Eastbound Carriers Adjust Fuel Surcharges Effective October 1, 2021

Several carriers serving the East Asia/USA trade lanes (U.S. Imports) have adjusted fuel surcharges effective October 1 through December 31, 2021. Details are as follows.

Here is a table of BAF amounts posted by carriers; amounts for all other container sizes are as per formula:

TRANSPACIFIC EASTBOUND (Asia to USA)
BUNKER ADJUSTMENT FACTOR (BAF), Oct – Dec 2021, in USD, per 40ft ctr, except as noted below
Carrier
To US Atlantic/Gulf Coast Ports
To US Pacific Coast Ports
To IPI/MLB via US Pacific Coast
Dry
Reefer
Dry
Reefer
Dry
Reefer
CMA CGM
(see notes 1, 7)
903
1083
544
652
544
652
COSCO
(see note 2)
1020
1721
529
893
529
893
Evergreen
(see note 7)
987
1426
424
675
424
675
HMM
(see notes 3, 8)
1049
599
884
ONE
(see notes 4, 7)
358
568
220
310
505
595
OOCL
(see notes 5, 8)
1052
1775
580
979
867
1463
Yang Ming
(see note 7)
576
829
312
449
312
449
ZIM
(see notes 6, 7, 8)
828
1241
484
726
484
726

NOTE 1: CMA CGM calls the above Bunker surcharge the Bunker Adjustment Factor Surcharge (BAF03), tariff Rule No. 010.08.

NOTE 2: COSCO calls the above charge the Bunker Charge (BUC), tariff Rule 010-003. The BUC is effective September 1, 2021, until further notice.

NOTE 3: HMM calls the above charge the Bunker Charge, tariff Rule 2-63. HMM also filed in its FMC tariff Rule 2-95, Environmental Compliance Charge (ECC), effective September 1, 2021. The ECC amounts are USD120/134/150/169 per 20/40/40HC/45ft, respectively, for destination USWC/USWC Local/IPI/MLB; and USD216/240/270/304 per 20/40/40HC/45ft, respectively, for destination USEC (all water)/USGC/RIPI.

NOTE 4: ONE calls the above Bunker surcharge the ONE Bunker Surcharge (OBS). Any reference to Bunker Adjustment Factor (BAF) or Fuel Adjustment Factor (FAF) within a duly filed service contract shall be construed as referencing the same surcharge as ONE Bunker Surcharge (OBS) as detailed within tariff Rule No. 102.001, whether as an exception or as a reference to this charge.

NOTE 5: OOCL calls the above Bunker surcharge the Fuel Cost Recovery Charge (T-62). The Fuel Cost Recovery Charge will not apply to shipments when Bunker Surcharge and/or Low Sulphur Fuel Surcharge and/or Low Sulphur Adjustment Charge are already applied or included in the base rate.

NOTE 6: ZIM calls the above Bunker Charge the New Bunker Factor - Far East (NBF), Rule 010-NB. Service contract cargoes subject to Carrier’s published BAF and/or EBS shall not be subject to NBF.

NOTE 7: Subject to Low Sulphur Fuel Charge (LSF or LSS).

NOTE 8: Updated on a monthly basis.

Each carrier maintains its own tariffs and controls its own pricing.

Transpacific Eastbound Carriers File GRIs Effective September 15 and October 1, 2021

Several leading carriers serving the Transpacific container trades have recently updated their respective tariffs to include new General Rate Increases (GRIs) effective September 15, 2021, including CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, Ocean Network Express (ONE), and ZIM. Yang Ming will apply GRIs effective September 20, 2021. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The September 15th GRIs will be the eighteenth GRI of 2021 for the East Asia/USA trade lane.

TRANSPACIFIC EASTBOUND (Asia to USA)
GENERAL RATE INCREASE (GRI)
Effective September 15, 2021, except as noted
Carrier
in USD, per 40ft ctr
CMA CGM
2000
COSCO (see note 1)
1000
Evergreen
1000
Hapag Lloyd
3000
HMM (see note 2)
1000 / 2000
ONE
1000
Yang Ming (see note 3)
1000 / 2000
ZIM
1000

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

NOTE 2: HMM GRIs will be USD 1000 per 40ft container for cargo to destinations USWC, USEC, US Gulf coast, and USD 2000 per 40ft container for cargo to destinations IPI, MLB, RIPI. GRI amounts for all other container sizes are as per formula.

NOTE 3: Yang Ming postponed its GRIs from effective September 16th until effective September 20th. Yang Ming GRIs will be USD 1000 per 40ft container for cargo to destinations USWC, USEC, US Gulf coast, and USD 2000 per 40ft container for cargo to destinations US Inland Points via USWC/USEC, including IPI, Minilandbridge, Reverse IPI (IPI/MLB/RIPI). GRI amounts for all other container sizes are as per formula.

Some carriers updated their tariffs to include new General Rate Increases (GRIs) effective October 1, 2021, including CMA CGM, COSCO, Evergreen, Hapag Lloyd, HMM Company Limited, Ocean Network Express (ONE), and ZIM. See table below for GRI amounts per 40ft container; GRI amounts for all other container sizes are as per formula. The October 1st GRIs will be the nineteenth GRI of 2021 for the East Asia/USA trade lane.

TRANSPACIFIC EASTBOUND (Asia to USA)
GENERAL RATE INCREASE (GRI)
Effective October 1, 2021
Carrier
in USD, per 40ft ctr
CMA CGM
2000
COSCO (see note 1)
1000
Evergreen
1000
Hapag Lloyd
3000
HMM (see note 2)
1000 / 2000
ONE
1000
ZIM
1000

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

NOTE 2: HMM GRIs will be USD 1000 per 40ft container for cargo to destinations USWC, USEC, US Gulf coast, and USD 2000 per 40ft container for cargo to destinations IPI, MLB, RIPI. GRI amounts for all other container sizes are as per formula.

Transpacific Westbound Carriers Update Fuel Surcharges Effective October 1, 2021

Several carriers serving the USA/East Asia trade lanes (U.S. Exports) have adjusted their fuel surcharges for the October to December 2021 quarter. Here is a table of carriers that have posted BAF amounts; amounts for all other container sizes are as per formula:

TRANSPACIFIC WESTBOUND (USA to Asia)
BUNKER ADJUSTMENT FACTOR (BAF), Oct – Dec 2021, in USD, per 40ft ctr, except as noted below
Carrier
Dry Cargo
Reefer Cargo
From US Atlantic/Gulf Coast Ports
From US Pacific Coast Ports
From US Atlantic/Gulf Coast Ports
From US Pacific Coast Ports
CMA CGM
(see notes 1, 7)
74
38
124
88
Evergreen
(see note 7)
234
117
625
330
HMM
(see note 2)
248
363
2078
1218
ONE
(see notes 3, 7)
172
112
382
202
OOCL
(see notes 4, 8)
118
95
177
143
Yang Ming
(see notes 5, 7)
240
144
829
449
ZIM
(see notes 6, 8)
84
49
126
74

NOTE 1: CMA CGM calls the above Bunker surcharge the Bunker Adjustment Factor Surcharge (BAF-03), tariff Rule No. 010.4.

NOTE 2: HMM calls the above charge the Bunker Surcharge (BUC) Rule No. 10-02A.

NOTE 3: ONE calls the above Bunker surcharge the ONE Bunker Surcharge (OBS). Any reference to Bunker Adjustment Factor (BAF) or Fuel Adjustment Factor (FAF) within a duly filed service contract shall be construed as referencing the same surcharge as ONE Bunker Surcharge (OBS) as detailed within tariff Rule No. 102.001, whether as an exception or as a reference to this charge.

NOTE 4: OOCL calls the above Bunker surcharge the Fuel Cost Recovery Charge (T-62). The Fuel Cost Recovery Charge will not apply to shipments when Bunker Surcharge and/or Low Sulphur Fuel Surcharge and/or Low Sulphur Adjustment Charge are already applied or included in the base rate.

NOTE 5: Yang Ming calls the above Bunker surcharge the New Bunker Charge, rule number 10-AH.

NOTE 6: ZIM calls the above Bunker Charge the New Bunker Factor - Far East (NBF), Rule 010-NB.

NOTE 7: Subject to Low Sulphur Fuel Charge (LSF or LSS).

NOTE 8: Updated on a monthly basis.

Each carrier maintains its own tariffs and controls its own pricing.

Transpacific Westbound Carriers File GRIs Effective October 1, 2021

Some carriers updated their respective tariffs to provide General Rate Increases (GRIs) effective October 1, 2021, including CMA CGM, HMM, Mediterranean Shipping Company (MSC), and OOCL. Evergreen plans to apply GRIs effective September 25, 2021. The following table provides GRI amounts for 40ft dry containers, except as noted. GRI amounts for all other container sizes are as per formula.

TRANSPACIFIC WESTBOUND (USA to Asia)
GENERAL RATE INCREASE (GRI)
Effective October 1, 2021, except as noted
Carrier
in USD, per 40ft container as noted below
CMA CGM (see note 1)
100 / 200
Evergreen (see note 2)
1000 / 500
HMM (see note 3)
1000
MSC (see note 4)
200
OOCL (see note 5)
200

NOTE 1: CMA CGM published a GRI rule for effective October 1, 2021, for USD50/100/100 per 20ft/40ft/45ft for origins/via Los Angeles, Long Beach, Oakland, Seattle, Tacoma; and USD100/200/200/300 per 20ft/40ft/45ft/20ft and 40ft reefer for origins/via U.S. East Coast and U.S. Gulf Coast Ports. The GRI is not applicable to Open Top (OT) rates, Flat Rack (FR/FF/CF) rates, Reefer rates, nor Breakbulk rate items.

NOTE 2: Evergreen published a GRI rule in its FMC tariff for effective September 25, 2021, for USD 800/1000/1000/2000 per 20ft/40ft/45HC/40HC reefer, for destinations East Malaysia ports, including Binyulu, Kota Kinabalu, Kuching, Labuan, Miri, Sandakan, Sibu, Tnajun Manis, Tawau; and USD400/500/500/500 per 20ft/40ft/40HC/45HC for destinations in the Philippines.

NOTE 3: HMM published a GRI rule in its FMC tariff for effective October 1, 2021. The GRI will be USD1000 per 40ft reefer. The GRI will apply for both frozen and chilled cargo and will also apply to Shipper Owned Containers (SOC).

NOTE 4: Mediterranean Shipping Company (MSC) announced its GRI will apply effective October 1, 2021. The GRI will be USD160 per 20ft dry container, and USD200 per 40ft dry container.

NOTE 5: OOCL published a GRI in its FMC tariff for effective October 1, 2021. The GRI applies to service contract rates for dry cargo, unless otherwise specified in individual service contracts. The GRI is USD160 per 20ft, USD200 per 40ft for general agricultural products, excluding hay, cotton, and dried fruits and nuts. The GRI for hay is USD80 per 20ft, USD100 per 40ft.

Hamburg Sud, Hapag Lloyd, OOCL to Increase Rates to Australia and New Zealand October 1

Hamburg Sud, Hapag Lloyd, and OOCL have filed General Rate Increases (GRIs) in their FMC tariffs for effective October 1, 2021 for cargo moving from the USA to Australia and New Zealand. CMA CGM filed GRIs in its FMC tariff for effective September 15, 2021. There are currently no active discussion agreements for trade from the USA to Australia and New Zealand. The previous discussion agreement U.S./Australasia Discussion Agreement, FMC Agreement No. 011117 expired. See table below. GRI amounts for all other container sizes are as per formula.

From USA to Australia/New Zealand
GENERAL RATE INCREASE (GRI)
Effective October 1, 2021, except as noted
Carrier
in USD, per 40ft container as noted below
CMA CGM (see note 1)
1000
Hamburg Sud
400
Hapag Lloyd
600
OOCL (see note 2)
500

NOTE 1: CMA CGM published a GRI rule in its FMC tariff for effective September 15, 2021. The GRI will be USD500 per 20ft, USD1000 per 40ft container, for all commodities from U.S. East Coast or U.S. Gulf Coast ports of load or inland points via said ports. The GRI is not applicable to Open Top (OT) rates, Flat Rack (FR & FF) rates, Breakbulk items, nor Reefer rates.

NOTE 2: OOCL published a GRI rule in its FMC tariff for effective October 1, 2021. The GRI applies for all service contract rates for dry cargo, unless otherwise specified in individual service contracts. The GRI will be USD400 per 20ft, USD500 per 40ft container.

Caribbean Shipowners Association Announces Peak Season Surcharges Effective September 26

The Caribbean Shipowners Association (CSA), FMC Agreement No. 010979, recently announced a Peak Season Surcharge (PSS) which will apply from September thru January. The CSA Carrier members serve trade lanes between the United States and the Caribbean destinations located in the Leeward/Windward Islands (excluding Guadeloupe, Martinique, Saint Barthelemy, French/Dutch Saint Maarten), Trinidad, Guyana, Suriname, Haiti, the Cayman Islands, the Bahamas, Jamaica.

See table for the Peak Season Surcharge (PSS) that apply from September 26, 2021 through January 9, 2022.

From USA to the Caribbean
PEAK SEASON SURCHARGE (PSS), Sep 26, 2021– Jan 9, 2022, in USD
To Caribbean, except as noted
To Cayman Islands
Equipment Size
Dry
Reefer
Equipment Size
Dry
Reefer
20ft
200
250
20ft
100
100
40ft
400
500
40ft
200
200
40ft+
450
n/a
40ft+
225
n/a
Below amounts vary by carrier; see Notes
Below amounts vary by carrier; see Notes
Vehicle up to 700/750 cft
120
n/a
Vehicle up to 750 cft
100
n/a
Breakbulk (w/m)
9.60 / 8.48
n/a
Breakbulk (w/m)
4.60
n/a
LCL, M (1 cft)
0.24
n/a
LCL, M (1 cft)
4.60
n/a
CWT (100 lbs)
0.48
n/a
CWT (100 lbs)
4.60
n/a

NOTE 1: Breakbulk (w/m) means per each 2000 lbs (W) or 40 cuft (M).

NOTE 2: Crowley will apply PSS USD0.72 per CWT.

NOTE 3: King Ocean will apply PSS USD9.60 per W/M for breakbulk for the Caribbean; USD0.24 per cuft, USD0.48 per 100 lbs for the Caribbean; and USD120 per vehicle up to 700 cft for the Caribbean.

NOTE 4: Seaboard Marine will apply PSS USD8.48 per W/M for breakbulk for the Caribbean, and USD4.60 per W/M for LCL and breakbulk for the Cayman Islands. Seaboard Marine will apply PSS USD120 per vehicle up to 750 cft for the Caribbean.

CSA members are Seaboard Marine, LTD., Tropical Shipping & Construction Company Limited, LLC, King Ocean Services Limited, Crowley Caribbean Services LLC, and Hybur LTD. For more information see individual carrier tariffs.

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The information contained herein is obtained from reliable sources. It is subject to change at any time, however, depending on changes in laws and regulations. While we continually attempt to monitor this information, we do not guarantee its accuracy and are not responsible for any damages suffered by any party in reliance on it.
 
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