Peak Season Surcharges (PSS) imposed by most carriers in the TransPacific Eastbound trades as of June 15
have been reduced. Generally speaking, carriers have imposed the PSS for 2005 of US$
300/400/450/510 per 20’/40’/40’high cube/45′ container to apply from June 15 thru Nov 30, 2005.
PSS levels for LCL cargo vary. Here at Distribution-Publications, Inc. (DPI) we have seen many
tariff amendments filed in late June to reduce the PSS by 50% or waive it entirely until July 15,
especially on shipments from China to or via US Pacific Coast Ports. Many carriers have published
temporary exemptions in the PSS rules of their FMC tariffs, which will allow them re-impose the
full PSS amounts as of July 16. Other carriers have amended selected rates to waive or apply
reduced PSS charges for a temporary period.
The Trans-Atlantic Conference Agreement (TACA), whose member carriers serve the trade between the
USA and North Europe, United Kingdom and Ireland, Scandinavia and Baltic Ports, have announced an
extension of their Bunker Adjustment Factor (BAF) until August 15, 2005. Currency Adjustment Factor
(CAF) will remain at 9 percent at least until August 15, 2005. The BAF amounts that took effect
on May 16 have been extended thru August 15, 2005. These are as follows: To/from/via US Atlantic/Gulf
Coast Ports, US$304/20ft ctr, US$608/40/45ft ctr and US$30/W/M, and US Pacific Coast Ports, US$456/20ft
ctr, US$912/40/45ft ctr and US$46/W/M. Recent increases in oil prices worldwide may prompt TACA to
increase its BAF as of August 16, 2005.
The group also announced the suspension of the Port Congestion Surcharge for the ports of
Los Angeles and Long Beach will be extended thru July 31, 2005. This surcharge of US$200 per 20ft
container and US$400 per 40ft/45ft container was initially implemented November 15, 2004, but has
been suspended since February 15, 2005. TACA members are Atlantic Container Line, Hapag-Lloyd
Container Line, Mediterranean Shipping Co., A P Moller-Maersk Sealand, NYK Line, OOCL and P&O
Nedlloyd Limited. BAF and CAF surcharges to apply from August 16 will be announced no later
than July 15, 2005. These surcharges are published in TACA’s relevant FMC tariffs and at
The carrier members of the United States South Europe Conference (USSEC) FMC Agreement No. 202-011587,
serving the trades between US Atlantic/Gulf Ports and South European ports of Italy, France, Spain,
Portugal, Greece, Cyprus and Crete have recently announced adjustments to their Currency Adjustment
Factor (CAF) and an extension of current Bunker Adjustment Factor (BAF) surcharges. Current BAF of
US$260/20ft ctr, US$520/40ft ctr and 22 percent for cargo rated on a per unit, per weight ton, or W/M
basis will remain unchanged thru the month of August. CAF will be reduced from current levels of 11
percent to 9 percent for the month of August.
USSEC Member Carriers are A.P. Moller-Maersk Sealand, Hapag Lloyd Container Line and P&O Nedlloyd
Additional information on surcharges applied by the USSEC carriers is available at
PierPASS Inc. has announced that OffPeak, a new program to reduce congestion at the Port of Los Angeles
and Port of Long Beach, will begin Saturday, July 23, 2005. OffPeak will allow truck pickup and delivery
of cargo to and from the ports at night and on Saturdays. The extra hours of operation will be Monday
through Thursday 6pm to 3am, and Saturdays 8am to 6pm. PierPASS was established in 2004 by marine terminal
operators of the Port of Long Beach and the
Port of Los Angeles as a non profit agency to
traffic congestion and air pollution in and around the ports.
To encourage use of its OffPeak program, PierPASS will charge shippers, consignees, or logistics providers
(including NVOCCs) a Traffic Mitigation Fee (TMF) for all containers moving through the ports at peak
of operation. The TMF will be $40 per TEU (20-foot equivalent unit) or $80 for all containers larger than a
20-foot unit. Peak hours of operation are Monday through Friday 3am to 6pm. The TMF will be used to fund
the costs of off peak hour operations which PierPASS estimates will cost marine terminal operators $156
million to $160 million annually.
FMC Tariffs: NVOCCs that charge shippers or consignees the PierPass TMF and/or handling fees associated
with it will be required by the US Federal Maritime Commission (FMC) to file rules in their tariffs to document
the collection of these fees. While the PierPASS TMF applies only on containers, some NVOCCs have filed new
surcharges in their tariffs to apply on less than container load cargo (LCL) to help off-set the new costs
they will incur due to PierPASS.
Free Teleconference: The Journal of Commerce Conferences unit of Commonwealth Business Media will
a free 90-minute teleconference on Thursday, July 7, from 2-3:30pm Eastern Time, concerning the details
of the OffPeak program. A question and answer period will also be held. Register online at
In a further effort to reduce congestion and improve air quality The Long Beach Harbor Commission recently
voted to reduce free time for the storage of containers at the
Port of Long Beach. The Commission also voted to impose a fine on marine terminal operators who
violate the new
Starting July 1, 2005 container free time, also known as temporary storage period, for inbound
containers will be reduced from five business days to four. Outbound container free time will be reduced
from seven to six business days. Calculation of free time will begin the day after the cargo has been
unloaded. Previously, free time was calculated starting from the day all cargo was unloaded from a
vessel. However, in the case that cargo is subject to inspection by the U.S. Customs and Border
Authority free time calculations will begin only once the cargo has been released.
“The changes in free time will help to keep cargo moving smoothly by giving shipping terminals
tools to avoid the kinds of backups we saw last year,” said Port Executive Director Richard D. Steinke.
“Less congestion will improve turn times for truck drivers and improve air quality.”
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“Navigating the Regulatory Seas” is a service mark of Distribution-Publications, Inc.
Vol. 9, No. 7, July 6, 2005
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.