Members of the Asian Feeder Discussion Group (AFDG) have introduced an emergency cost recovery surcharge to counter rising operating costs brought on by port congestion.
Ports in South East Asia say they have been experiencing “above average utilisation” since the beginning of the year due to disruptions caused by the crisis in the Red Sea.
For containers travelling between ports in Singapore and Chittagong, West Asia, Haiphong and Karachi the surcharge will be a minimum of $100 per teu one way.
The minimum charge falls to $75 per teu one way for routes between Singapore and Bangkok, the Philippines and Dannang/Quinhon.
For voyages between Singapore and ports in Indonesia, Malaysia, Cambodia, Songkhla and Laem Chabang in Thailand and Ho Chi Minh the surcharge falls to $40 per teu each way.
The AFDG said the surcharge will be applicable for all laden and empty containers, which will be charged at 50% of the laden rate, until further notice.
Members of the agreement said they had adopted voluntarily policy guidelines and had reached a non-binding consensus in applying the surcharge.
“Major transshipment ports in South East Asia are experiencing heavy congestion resulting in extensive berth delays and extended port stay. This has resulted in significant vessel delays” the AFDG claimed.
“Our members have over the past weeks implemented various contingency plans including multiple omissions and speeding up of vessels in order to protect schedule integrity and maintain adequate service coverage.
“While managing the current situation as best possible, our members have experienced a significant increase in overall operational costs,” the AFDG added.
However, the surcharge has been introduced just when congestion appears to be easing, according to container ship data providers.
“Congestion peaked on 31 March/1 April, at the highest level since November 2021,” Peter Sand, chief analyst at Xeneta, a container freight rate benchmarking service, told TradeWinds.
“Since 13 April, the declining congestion has been significant and is now below its historical average.”
Xeneta’s Port Congestion Index shows port congestion in South East Asia dropping below 0.9m teu as of 24 April 2024, down from a high of almost 1.1m teu at the beginning of the month.
