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Monday Morning eBriefing

The Monday Morning eBriefing is a members-only digital newsletter which provides up-to-date and informative news on regulatory and legislative matters important to customs brokers, freight forwarders, and NVOCCs. It’s published every Monday at 6 a.m. ET. To submit content or ideas, contact Christopher Gillis, NCBFAA Communications Director, at cgillis@ncbfaa.org.

NCBFAA In the News 

NCBFAA Members Ask for More Transparency for Non-Red Sea Route Rate Hikes

Feb, 11, 2024 | International Trade Today

The National Customs Brokers & Forwarders Association of America is asking for more transparency around recent surcharges imposed by carriers, saying its members are seeing "sharply" increasing rates for shipping routes that never routed through the Red Sea or the Gulf of Aden (see 2402080083 and 2401050066).

In comments last week to the Federal Maritime Commission, NCBFAA said rates have increased from $800 to $2,000 per container for non-impacted routes. Those rate increases have shown up as “Peak Season Surcharges, Panama Canal Adjustment Factors, and Bunker Adjustment Factors rather than addressing the Aden Sea issues directly," NCBFAA said, adding that this is the first time these charges have been applied for some routes. The group also said carriers have applied a “general rate increase on base rates” that were below announced levels.

The association said carriers are reportedly applying surcharges on these routes because of “equipment imbalances” and disruption to “other services globally,” which has partly been caused by Yemen-based Houthi rebels attacking cargo ships in the Red Sea. The NCBFAA said rates on routes that are impacted have increased by “nearly double” since the pre-Jan. 15 rates. NCBFAA members also "noted delays due to changes in planned routes between 17 and 35 days."

The NCBFAA said that their members want additional fees to be “targeted to where real additional costs are incurred.” It said those rate increases should be justified with “real data” showing the operational costs. “NBCFAA members believe that such reporting will provide transparency and clarity, and allow for the fewest disruptions possible,” it said.

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