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Infos Business of Saturday, 19 July 2014

Source: lloydsll.com

Worsening port congestion prompts emergency extra charges

Congestion has worsened at the port of Douala, with vessel delays now reaching 28 days, according to CMA CGM, which has introduced an emergency port congestion surcharge (EPCS) on shipments to Douala from most origin points.

The EPCS comes into effect from 1 August and is in addition to the current port congestion surcharges (PCS) in Douala and Port Gentil, Gabon, implemented in June. CMA CGM also announced earlier this month that it was applying a €200 per teu PCS from Europe, Mediterranean and Red Sea to Cameroon from 1 August, but worsening disruptions to vessel schedules has led the French carrier to implement this additional EPCS, ranging from €200 per teu from Europe, Mediterranean and Red Sea, to $300 per teu from Asia, the Middle East, Gulf and India.

Cargo from North America has escaped the EPCS, charged only the basic PCS of $100 per teu.

CMA CGM commented: “Vessel delays due to the current port congestion in Douala are now reaching 28 days, causing severe disruptions of service and highly increasing operational costs. CMA CGM will, however, continue to ensure service to Douala and has decided to implement an Emergency Port Congestion Surcharge, in addition to the current applicable PCS, as from 1 August.”

Congestion at Douala has continued to build over the past weeks, with operators reporting since late last month that containers on the ground at the port had reached a critical amount and were jeopardising vessels operations; full vessels were waiting at anchorage, with very slow productivity at the port; and an approximate three to four-week delay to berth. This situation was said to be affecting the entire port of Douala, with all shipping lines facing delays.

Late last month MSC implemented a PCS for Douala, effective 27 July, although the carrier is also understood to have suspended bookings into Cameroon from some markets.