Trucking Surcharges
Trucking costs are rising dramatically, due to ELD enforcement (beginning March 18) of Hours of Service limits, driver shortages and rising compensation, etc. Ocean carriers are paying higher costs to truckers, on their contracted store-door deliveries. We are monitoring these new surcharges, as we do not believe such surcharges should apply to port-to-port rates, or any move in which the ocean carrier is not responsible for paying a US trucker. Following is an inventory of ocean carrier trucking-related charges.
Atlantic Container Line
Dear Customer –
You will be aware that in recent weeks truck supply across North America has become an enormous problem.
It has now reached a tipping point in some markets.
Most particularly, in the Chicago metropolitan area.
Here, a number of factors have combined to severely stress our ability to offer a viable carrier haulage operation, specifically :
· Heavy gate congestion
· A chronic lack of truck power
· A near zero availability of chassis across the city
· Bunching of inbound trains ( from both the East and Pacific coasts )
· Increased container volumes, both import and export
· Heavy snowfall and loss of yard storage
· Punitive non-negotiable surcharges from all suppliers, including house truckers.
These critical developments have forced us to urgently review our policy and C/H operation at our key Midwest hub.
Given the severity of the current situation, and the dire forecasts, relative to the future availability of drivers, tractors and chassis, we have no option but to declare a “ force majeure “ situation.
Accordingly, with IMMEDIATE EFFECT, ACL is nowSUSPENDING ALL PRE AND POST RAMP CARRIER HAULAGE OPERATIONS in Chicago.
This is applicable for both EXPORTS, as well as IMPORTS. In addition to covering QUOTE/SPOT TRAFFICs, this also covers shipmentsmoving under ALL Service Contracts
Additionally, this also covers cargoes to/fromST PAUL as truckers are required to crosstown boxes between the two ramps.
Addressing the Backlog
For imports, we will endeavor to deliver all loads with booked C/H, that are now in situ in North America ( either at the ramp, on the rail or in Halifax ) This includes cargo discharged on the Sea ( ASU0318 )
For exports, we will cover existing jobs on our books, but from Monday, 19th February, we will only quote and move cargo on a ramp/port basis.
Terminations
All other import cargo, starting with the incoming vessel, The Atlantic Star ( voyage # AST0618 ) will now be terminated at Chicago ramp and re-rated.
The on-carriage and associated fuel component will be broken-off the original through-rate. This process will be managed through ACL’s European offices.
The Situation Going Forward
We will continue to monitor the situation, but we do not envisage any improvement in the congestion nor supply, in the near future.
We apologize for any inconvenience caused, and please understand that we did not take the decision, to cease offering haulage, lightly.
Indeed, we have been battling very difficult conditions for many weeks.
However, given the intolerable pressures and mounting challenges at hand, we have concluded that we can no longer hope to maintain a satisfactory post or pre-ramp carrier haulage service over Chicago.
We thank you for your cooperation and understanding
Evergreen Shipping
Dear Valued Customer,
Please new tariff filing for Emergency Trucking Cost Recovery (ETCR) effective April 1, 2018.
EGLV-618 Far East, S. Africa, E. Africa & Middle East to USA & Puerto Rico
Rule: 010-E07 Emergency Trucking Cost Recovery (ETCR)
Effective Date: April 01, 2018 (New Filing)
In order to recover the unexpected increases in the cost of inland
transport/door delivery due to truck cost increase, all cargo shipped under
this tariff, or under service contracts to which this tariff is applicable
by the terms of such service contract, shall be subject to an Emergency
Trucking Cost Recovery (ETCR) USD 200 per dry container and USD 400 per
reefer container on all cargo being delivered to the customer’s door from
US Marine terminal and Rail terminal.
Remark: For Service Contract whose original effective date is on and
after March/01/2018 is exempted from this filing.
Hyundai Merchant Marine
March 8, 2018
New Surcharge for Trans-Pacific Westbound, Trans-Pacific Eastbound and Trans-Atlantic Eastbound – Emergency Door Surcharge (EDS) Effective April 6, 2018
Dear Valued HMM Customer,
In order to recover unexpected increases in the cost of door pick-ups due to truck power shortages, all cargo originating from the U.S. and Canada for Trans-Pacific Westbound and Trans-Atlantic Eastbound shall be subject to an Emergency Door Surcharge (EDS) on all cargo being received at the Shipper’s door. This charge shall be in the amount of $300 per container, effective as of April 6th, 2018.
In order to recover unexpected increases in the cost of door deliveries due to truck power shortages, all cargo destined to the U.S. and Canada for Trans-Pacific Eastbound shall be subject to an Emergency Door Surcharge (EDS) on all cargo being received at the Shipper’s door. This charge shall be in the amount of $300 per container, effective as of April 6th, 2018.
TPWB:
Reference Tariff HDMU-046, Rule 2-75 for U.S.
Reference Tariff HDMU-946, Rule 2-75 for Canada and Exempt
TASEB:
Reference Tariff HDMU-101, Rule 168
The base rates as well as Bunker related surcharges, Security related surcharges, and other kinds of surcharges remain unchanged and for European trades they can be found at the below link.
▣ Link to Rate (for Europe Routes) and Surcharges (www.hmm21.com/surcharges)
TPEB:
Reference Tariff HDMU-040, Rule 2-90
Respectfully,
Hyundai Merchant Marine (America), Inc.
Americas Headquarters – Irving, TX
___________
March 8, 2018
Snow Chain Surcharge For Door Moves
Dear Valued HMM Customer,
Since the new Electronic Logging Device (ELD) mandate went into effect, it has been observed that trucking companies are separating charges for events/actions required that affect driving hours.
Based on this, a ‘Snow Chain Surcharge’ is one of the surcharges that is being newly applied.
Truckers in the state of Oregon have to put on snow chains in inclement weather when required by the Oregon Department of Transportation. The installation and removal of snow chains on a truck and chassis can take up to a total of 2-3 hours. Customers having delivery points located in mountainous or other terrain where often hit with winter weather need to be aware that the truckers will be charging a snow chain surcharge when delivering or picking up goods in winter weather.
The surcharge amount varies based on distance and the trucking companies involved, and can be billed to the customer through HMM in case of door trucking arranged by HMM.
(Reference: Tariff Code HDMU-040 Rule No. 2-37 Clause D. 1.)
So far no other locations beside Portland, OR have introduced this surcharge, but it is being discussed within the trucking community for application in other locations as well.
Hyundai Merchant Marine is focused on continuing to provide reliable door delivery and pick-up service for our customers. We would like to thank you for your understanding and for your strong support.
Reference rule
Tariff Code HDMU-040 Rule No. 2-37 Clause D. 1.
D. Store Door (SD) Delivery
1. Where SD delivery is explicitly provided for in Bill of Lading or in any service contract incorporating this Rule, cargo in containers may be delivered to Consignee or his agent at the location thus provided for. Carrier shall retain complete control over the selection of modes and Inland Carriers up to the final delivery location. Delivery shall be complete when the loaded containers become available to the Consignee or his agent at the specified location, and all subsequent shifting, unstuffing, and other expenses at such locations shall be for the account of the cargo interests. For the equipment detention and demurrage, see Rule 21, Rule 101 and Rule 101-01.
Respectfully,
Hyundai Merchant Marine (America), Inc.
Americas Headquarters – Irving, TX
Maersk Line
Dear Valued Customer,
The trucking market in the United States continues to face challenges due to a capacity shortage. These challenges are impacting Maersk Line’s ability to deliver cargo on time for store door services. Delays due to adverse weather are also increasing pressure on an already-stretched market, resulting in a longer recovery time.
We’ve outlined some of the key challenges contributing to the current situation:
- A healthy U.S. economy has contributed to a nationwide shortage of drivers
- A December 18, 2017 U.S. federal mandate for implementation of ELD (Electronic Log Data) has impacted driver productivity
- Congestion at terminal and rail ramps has further limited maximum productivity during drivers’ work hours
- Increased street dwell has reduced chassis availability
- Space constraints have led to U.S. rail ramps limiting free time allowances
- An overall increased risk for demurrage, storage, and detention due to capacity shortages
Despite the above challenges, Maersk Line remains committed to delivering as your single partner from end to end. Our commitment to you is to act as a true partner in defining the new normal within the current trucking landscape and to remain agile as it evolves. In order to secure our promise to deliver against your store door needs, we will introduce an increase to our inland tariff, effective March 14, 2018.
Maersk Line offers the following suggestions to aid in mitigating delivery delays:
- Ensuring final delivery locations are ready to receive drivers to limit waiting times
- Offering flexible receiving times at warehouse locations
- Clearing cargo at port of discharge vs. Inland CY location, allowing for additional lead time to secure truck power
- Submitting freight & Original Bill of Lading (OBL) in a timely manner to mitigate processing delays
- Submitting complete, timely delivery orders to Maersk Line via deliveryorder@maerskline.com to allow ample time for confirming truck power
- Utilizing rail product offerings to minimize trucking needs where capable
Despite the operational constraints presented in the trucking market, you have our commitment to strive for compliance with your booking requirements. We will continue to actively monitor the situation and provide timely updates on changes that may impact your supply chain.
Remember, we are committed to remaining your one partner in providing end-to-end solutions. We’ve got you covered from door to door.
We would like to take this opportunity to say thank you for doing business with us. As the world’s leading shipping company, we strive to be your reliable shipping partner, propelling your business forward and supporting your growth ambitions.
If you have any questions, please feel free to reach out to your local sales or customer service representative. You will find contact details of our local offices on maerskline.com.
If you wish to place a booking you can always visit my.maerskline.com.
Sincerely,
Your Maersk Line North America Team