Container shippers bracing for extra peak season costs

TORONTO — A high volume of container traffic this time of year has trans-Pacific lane shippers preparing to pay higher surcharges.

A second peak season surcharge of $200 per standard container, from August 1 until the end of October 3, is being charged by the member lines of the Canadian Transpacific Stabilization Agreement (CTSA), reports freight brokerage firm Livingston International.

Stronger than expected seasonal demand has
constrained shipping networks and increased costs.

Livingston is also warning companies to start making shipping arrangements as soon as they can in order to secure space on shipping lines. The firm recommends pre-booking at least two to four weeks ahead.

Most container shipments had already been tacked with surcharges of between $300 and $500 earlier this summer, depending on the size of the unit.

From now until October 31, shipping lines are charging an additional $150 to $255 on top of that for both standard and high cube containers between 20 and 45 ft long.

Container shipping vessels are reportedly nearly full from Asia to both west and east coast Canadian ports.

“High shipping volumes reflect a stronger-than-expected peak season, concerns over growing network constraints, inland rail congestion, the completion of factory holidays in Japan and China and growing seasonal retail shipments,” Livingston explains.

Furthermore, 20 percent cargo growth in Asia-Europe trade and strong intra-Asia demand have further tightened space and equipment availability for all markets around the world.