Peak season surcharges in the transpacific container market have arrived earlier than usual and are higher. Shipping lines are now implementing peak season surcharges (PSS), taking advantage of high demand and limited capacity, seeking more than double the usual amounts.

These surcharges began on June 1st, almost a month earlier than typical. Additionally, new surcharges are expected on June 15th and July 1st. Transpacific trade routes are the most affected, especially those from Asia to the United States.

While imposed by shipping lines, these surcharges affect everyone in the industry. Importers, non-vessel operating common carriers (NVOCCs), and sectors such as the Automobile industry and home furniture are all involved.

These surcharges are a response to the current high demand and limited shipping capacity. Shipping lines seek to balance the difference between contracted and spot market rates, which are higher.

PSS surcharges are being applied in stages: $600 per FEU from June 1st, another $400 on June 15th, and $2,000 per FEU starting July 1st. These amounts are negotiable and part of annual service contracts or named account contracts.

These surcharges reduce the gap between lower contracted rates ($1,500 to $1,700 per FEU to the West Coast) and current spot market rates, which exceed $6,000 per FEU to the West Coast.

Shipping lines must present their peak season surcharges to the Federal Maritime Commission (FMC) 30 days before implementation, and the actual amounts paid are subject to negotiation with clients. Importers are advised to book their shipments in advance, as capacity shortages require early reservations, complicating the prediction of the PSS magnitude.

Shipping lines face multiple challenges, such as taking longer routes to avoid militant attacks near the Suez Canal, airport congestion in Asia, and maintenance in dry docks. These factors further reduce capacity and increase spot rates. The spot rate for containers from Asia to the U.S. West Coast increased from $4,000 per FEU in early May to nearly $6,875 in mid-June, with expectations of further increases due to the General Rate Increases (GRI) planned for June 15th.

There is no consensus on the duration of the current situation, but importers are expected to continue to face surcharges and rate increases at least until early October, during Golden Week in Asia. Shipping lines seeking to improve their container capacity through leasing also face rapidly rising lease rates.

ExFreight’s online platform provides indispensable tools to overcome these periods of high rates. It offers instant door-to-door shipping quotes for both domestic and international shipments. Our international shipping services are connected to ocean and air carriers via GPS, allowing customers to track their cargo in real time from anywhere in the world. Additionally, we offer road transport and import and export services by sea and air to over 150 countries.

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