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Caribbean Shipowners Association adopts 2014 peak season surcharge

Published:Tuesday | August 26, 2014 | 8:00 AM
Dr Roslyn Reid (left) checks the left leg of Gabriel Bramwell right after she complained that she was feeling pain in the leg while attending the Shipping Association of Jamaica 75th Anniversary Back-to-School Health Clinic, where the Children got free health checks, dental checks and eye tests. - Ian Allen/Photographer

The members of the Caribbean Ship Owners Association have adopted a voluntary guideline calling for the implementation of a 2014 peak season surcharge (PSS).

According to a release issued by the association, effective September 28, 2014 through January 3, 2015, a temporary PSS of USD175 per 20-foot equivalent unit will be applied, without exception, on southbound cargo to the Association's Caribbean basin service destinations.

The stress on availability of containers and space to serve exports from the United States (US) is expected to last through the 2014 peak season.

Caribbean Ship Owners Association said that the surcharge will enable carriers to recover the higher costs caused by increased volumes, including equipment positioning, labour overtime, port congestion, cruise liners and extra loaders.

Adjusting prices

"The practice of adjusting prices to reflect seasonal demand is common in many industries. It is designed to shift the peak demand to better match supply, thus avoiding service delays during peak periods," the release further stated.

This surcharge will be assessed as follows: 20-foot container - US$175; 40-foot container - US$350; over 40 feet - US$394. Additionally, vehicles up to 700 cubic feet (cft) will attract a fee of US$105 each, while vehicles exceeding 700cft will incur a fee of US$8 w/m (40cft or 2,000lb).

Breakbulk, less than container local (LCL), LCL 1cft and LCL (100lbs) will attract fees of $8 w/m (40cft or 2,000lb); $21/cft and $42/cwt, respectively.

The members of the Caribbean Ship Owners Association implementing this surcharge include CMA CGM, Crowley, King Ocean, Seaboard, SeaFreight, Tropical, United States Lines and ZIM Integrated Shipping Line.

The surcharge will be applicable on all US southbound cargo to the following Caribbean destinations: Anguilla, Antigua, Barbados, Dominica, Grenada, Montserrat, Saba, St Eustatius, St Kitts, Nevis, St Lucia, St Vincent, Trinidad, Jamaica, Guyana, and Suriname.