SHIPPING: MSC to increase emergency operation surcharges, offers guidance ahead of possible strike

HOUSTON (ICIS)–Global container shipping major Mediterranean Shipping Co (MSC) will increase its emergency operation surcharge (EOS) by $1,000/FEU (40-foot equivalent unit) effective 27 January on the North Europe to the US, Puerto Rico, and the Bahamas route.

In a customer advisory on 8 January, the company said it is taking the action considering significant changes in the alliances network.

“We foresee general operational disruption during the first months of next year, the company said.

Shipping alliances are agreements between carriers to collaborate globally on specific trade routes.

Several major carriers are restructuring alliances in 2025, the most significant shift in alliances since 2017, according to analysts at freight forwarder Flexport.

The previous EOS surcharge was $1,000/FEU, bringing the new surcharge to $2,000/FEO.

The company will increase the EOS surcharge by $800/TEU (20-foot equivalent unit), bringing it to $1,300/TEU.

GUIDANCE AHEAD OF POSSIBLE PORT STRIKE
The company also offered operational guidance to US customers ahead of the possible ILA strike at US Gulf and East Coast ports should the work stoppage occur.

For export booking from affected ports, the company will continue to accept bookings for dry cargo based on vessel availability and will reserve the right to not accept new refrigerated bookings via these ports where there is a risk to the refrigeration services due to the port strike for vessels departing on or after 16 January.

MSC is urging customers to move equipment before 16 January as many terminals will likely offering extended gate hours.

On demurrage and detention (port storage and container use inside the terminal), the company will follow terminal policy and only pass through at cost any demurrage charges imposed by terminals during the strike.

MSC will stop the clock on detention charges during the strike and once the strike has ended will resume billing following its tariffs.

MSC will align its policy to that of the rail ramp operators, the company said. If, the rail ramp operators cease to accept containers at origin ramps for US East and Gulf Coast bound ports, MSC will do the same.

For North America import cargoes via US East and Gulf Coast ports, MSC will adjust bookings – including rolls to other vessels or cancellations – as needed.

For new bookings, MSC will follow the same plan as for imports.

The company will refuse any liability arising from the strike due to reefer containers left uncollected at terminals.

MSC urges customers to pick up their import cargo before 16 January.

Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), which are shipped in pellets.

They also transport liquid chemicals in isotanks.

Thumbnail image shows a container ship. Photo by Shutterstock