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PCS for European inland waterways seems to become a permanent fixed fee

2021-09-08
As the logistics industry recovers from the damage caused by the July floods, it appears that the congestion surcharge will become a permanent fixed fee for European inland waterways.

Hapag-Lloyd announced last week that from September 15th, the rate will be increased from 135 Euros per TEU and 155 Euros per 40-foot container to 140 Euros and 170 Euros, respectively. Maritime Organization (IMO), congestion and the impact of high water surcharges or low water surcharges.

A person familiar with the matter said: "I have lost all the news about these changes and costs. The operators seem to do whatever they want, but this seems to make the congestion surcharge permanent."

In July this year, Hapag-Lloyd announced that in view of the abnormal congestion in Rotterdam, a surcharge of 20 euros will be imposed on each TEU. Previously, barge transportation between Antwerp and Rotterdam would be charged a surcharge of 35 euros.

However, the latest rate news has surprised people familiar with the matter, as the waiting time for ships of the main inland operator Contargo has been declining in recent weeks.
The average waiting time for ships in Antwerp is 36 hours, and the average waiting time for ships in Rotterdam is 49 hours. The former is slightly lower than last week. The overall trend of congestion time has stabilized at around 40 hours, which is lower than the peak of 180 hours earlier this year.
"Nevertheless, the situation in the inland areas is still a bit chaotic. What we see is that the inland shipowners are busy transporting empty containers." The person familiar with the matter said.
"For operators like Contargo, this is not a big deal. They have their own customers and set up routes. Shipping companies will require operators to pick up 400teu empty containers, and they will provide 15teu."

Hapag-Lloyd is not the only company that imposes a surcharge on inland transportation. Maersk is the first company to do so. In May of this year, it announced a fee of 10 euros per TEU.
Increasing freight rates will only exacerbate the anxiety of cargo owners. Nearly two months after the rail and road traffic was interrupted by floods in northwestern Europe, many cargo owners are still struggling to get their goods to the market.
The person familiar with the matter added: [Everything is packed and we are unable to move forward, partly because of the complete lack of communication between the parties."
"If we want to repair our supply chain, we need to open up communication channels between all relevant personnel. Surcharges are everywhere and the container terminal is occupied by 99% or even 100% of the capacity. This situation cannot be allowed to continue."

Source:Sofreight.com

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