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UK lines to add congestion charge

11/6/2007 9:54:03 AM

Container lines are to introduce a surcharge for calling at the UK's major ports to recover losses caused by congestion.

From 1 December, Far Eastern Freight Conference members calling at UK ports will charge customers an extra US$145 per TEU discharged on the westbound trade.

The FEFC explained that delays had been caused by a 15 percent increase in members' cargo in the first eight months of 2007, compared with the same period last year.

This has had the knock-on effect of causing vessels to bypass or divert from their planned UK port of call.

Kevin Whitmore, operations manager for forwarder Allport, said the firm had experienced delays of up to a week and had been expecting some sort of congestion charge for a while.

He said the problem is that all the different surcharges, peak season, congestion, BAF and CAF, are making the cost of moving the freight more and more expensive.

Rod Riseborough, CEO of the FEFC said what the lines are desperately trying to do is keep their ship's schedule, and the congestion charge will go some way to reimbursing them for the costs they incur trying to do that.

He said the UK is just the start and the same things will happen in the rest of Europe. Lines are also being forced to hire extra boxes as they struggle to make empties available in Asia for the westbound journey.

Southampton Container Terminals said that congestion was currently a problem and SCT has not suffered congestion since completion of our major civil works in September.

Lines decided to introduce the charge, which will be reviewed in 60 days, after undertaking a study that identified major cost increases.

 

CargonewsAsia

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