ELD Update

March 14, 2018

 

Another ocean carrier adds a $300/container surcharge on all deliveries.            

 

Hyundai Merchant Marine today announced that they will begin to impose an Emergency Door Surcharge on all deliveries they perform on containers moving against tariff or service contracts.  The effective date of the surcharge is April 6, 2018.  There are no exceptions included in the notice.

 

This is the second carrier that has decided to impose a surcharge on all deliveries as a result of the challenges securing truck power in the United States following implementation of the ELD requirement in December, 2017.  CMA was the first to impose a $300/container surcharge that was effective March 13, 2018.  CMA is restricting this surcharge to deliveries from following ramps/ports:  Chicago, Houston, Savannah, Memphis and Columbus.

 

What are other carriers doing?

 

MSC:  MSC has communicated that they will no longer perform door delivery services in the United States until further notice.  All bookings moving forward are to be to CY Port/Ramp only. In the communication we have received, there have not been any location exemptions or exclusions.

 

Maersk and Hamburg-Sud:  Maersk (along with Hamburg-Sud) has been communicatingwhere they are experiencing severe delays in procuring dray capacity, with some locations (and for US Export) experiencing a 7+ day delay in securing capacity.  In communications from Maersk, we understand that while Maersk is not imposing a specific surcharge, they are revisiting rate levels that include door delivery provisions and pricing, and on a case-by-case basis, increasing those rate levels accordingly.

 

Carriers Unable to Perform SDD Service:  We continue to experience situations where ocean carriers who have contracted with dray companies to perform trucking services are not able to find capacity at the previously negotiated rate levels.  With truck capacity so tight and drivers refusing non-compensatory deliveries, trucking companies are simply not willing to accept the dispatch without a significant increase.  The increases that we are seeing range between 15-25% over 2017 levels.

 

Ocean Carrier and Service Contracts for 2018-19 season:  As we approach the traditional TPEB contract season for 2018, one significant change will be the reluctance of ocean carriers to include door delivery services and rates in the annual contracts.  Those that will include trucking services will no doubt include language that allows the trucking rate levels to be reevaluated periodically.  However, for ocean carriers, simply having flexibility in the rate levels in the contract doesn’t address or solve issues like demurrage, congestion, and chassis availability that are all exacerbated by ELD and current market conditions.

 

Laufer’s Position Regarding ELD:  We at Laufer perform a significant number of import and export ocean drays for our customers – well over 25,000 per year (out of 70,000+ containers that are moving through our network annually).  We haven’t seen a disruption in services like what we are experiencing today since Hanjin’s bankruptcy in 2016, and there is no immediate relief in sight.  We at Laufer created a small Trucking Council of local, regional and national carriers as an advisory and feedback group.  Our goal is to inform our teams internally as well as our customer community what the trade is experiencing, how this is impacting you, and what solutions there may be moving forward.

 

BROWSE MORE ARTICLES

E-MAIL TO COLLEAGUE

NOTIFY ME WHEN NEW ARTICLES ARE POSTED

SOUND FAMILIAR? HAVE A SLIGHTLY DIFFERENT ISSUE? CONTACT US

Have the News Delivered to you

Like what you see here? Why not let us send it directly to you?
Sign up to receive our Weekly Industry Newsletter, a compilation of all news articles that matter to you and your business.