CMA CGM adjusts US PSS, delays some fee implementation dates

French shipping company CMA CGM this week announced surcharge updates for three of its service routes to the United States, including two delays in surcharge implementation.

First of all, the US $1,000 PSS (PSS05) originally scheduled to take effect on January 15, which was shipped from the Indian subcontinent, the Gulf of the Middle East, the Red Sea and Egypt to all Container along the East Coast and Gulf Coast of the United States, was postponed for the fourth time to January 18. Implementation began on the 18th. Then, another surcharge (PSS06) of the same amount was postponed from January 18th to February 1st, which was originally planned to take effect for all goods on the same route mentioned above. Additionally, a $1,200 surcharge (PSS07) will also be imposed on all shipments from these areas, including oversized shipments but not bulk groceries, effective February 15. It is worth noting that these adjustments come shortly after the major shipping companies reached an agreement with the International Association of Dockers, which covers the working conditions of about 25,000 union members in 14 ports on the East Coast and Gulf of Mexico.

In the Middle East, despite the impact of attacks on shipping activities by Houthi rebels in Yemen , CMA CGM remains the only major global Container carrier to continue operating in the Red Sea. Other shipping companies have chosen to detour the Horn of Africa for longer and more expensive voyages to connect Asia with European, Mediterranean and American markets. The increased costs also reflect importers pulling up in advance in order to finish stocking up ahead of the Chinese Lunar New Year holiday-Chinese factories are typically closed for weeks during the Spring Festival.

February will also witness the official launch of the reshuffled Ocean Alliance and Ship Sharing Agreement, a shift that could lead to increased delays and congestion issues. As a member of the Ocean Alliance, CMA CGM cooperates with China COSCO Shipping Group, Evergreen Shipping and OOCL. The said surcharge will remain in force unless otherwise notified, the company said.

Separately, CMA CGM had earlier announced that it would charge PSS ranging from $1,300 to $2,500 for Container travelling from the Mediterranean to ports along the US East Coast and Gulf Coast from January 18