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            october 19, 2019

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Hanjin joins MSC in renewing congestion fee it had withdrawn before


Korea's Hanjin Shipping has joined Mediterranean Shipping Co (MSC) in announcing it will re-apply a US west coast congestion surcharge next week after saying it would withdraw the fee just as MSC had done, according to Shipping Gazette.
It was first announced that an US$800 per TEU and $1,000 per FEU charge would be levied, first by individual lines MSC, Hanjin, Hapag-Lloyd, OOCL and CMA CGM and separately by the quasi-conference, the Transpacific Stabilisation Agreement.
But then came an abrupt U-turn after an outcry by shippers and foreboding comments by US regulators doubting the legality of the surcharge - at which point Hapag-Lloyd, MSC, Hanjin and OOCL withdrew it.
But now, Hanjin and MSC have both decided to re-implement the surcharge from next Wednesday, reports Lloyd's List.
Legal concerns arise over applying a surcharge to containers that were already in transit, reports Lloyd's List.
Said MSC: "This postponement was done as a result of concern how we intend to collect the surcharge for cargo already in transit."
Said Hanjin: "In the midst of the continuous slowdown in operation caused by the labour unrest, our vessels are being heavily affected by severe congestion, which is creating mounting costs."

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