The National Fisheries Institute (NFI) and several other trade groups are protesting shipping lines’ surcharges at the Port of Los Angeles, which are just the latest in a host of problems at the port.
“The surcharges they are considering are pretty expensive considering the low margins we work on,” Jeff Stern, VP of purchasing for Central Seaway Co., an importer in Northfield, Ill., told SeafoodSource.
Some shipping lines recently said they would assess a surcharge of USD 1,000 (EUR 799.23) per container, due to increased costs they have incurred, starting 26 November. However, several trade groups — including the NFI — are protesting the charges to the Federal Maritime Commission (FMC).
“The surcharges are improper and potentially unlawful. That is a significant cost at USD 1,000 per container,” said Gavin Gibbons, VP for communications at NFI. The McLean, Va.-based organization wants the FMC to recognize that the surcharges affect not only importers but also cold storage companies, insurance companies, financial services firms and many others that support seafood importers. “We want them to understand that this is more than just a dispute at the ports,” Gibbons said.
A perfect storm of congestion surcharges, trucker strikes and shipping carriers’ policy changes are delaying seafood importers’ cargo at the Port of Los Angeles and hiking their shipping costs. Earlier this week, 18 ships were waiting to unload their goods at the port, and a number of containers were being held up at the dock.
“It has definitely cost us a lot of money. It has created a lot of delays in delivering products to customers — both retail and foodservice — that were relying on promotions for Thanksgiving,” Stern said. “I imagine we are going to have the same problem for Christmas and New Year’s.”
Central Seaway, or CenSea, has managed to shift around inventories and get supply from other sources to fill the void for Thanksgiving promotions. But other seafood importers have not been so lucky.
“If you have commitments to big box stores, they are not very sympathetic to what you are going through. If you don’t deliver, they will find someone who will,” said Roger Clarke, owner of Wilmington, Calif.-based customs broker Williams Clarke, which works with several seafood importers.
While the truckers’ strike ended last weekend (the last two holdouts in the strike, Pacer Cartage and Harbor Rail Transport, agreed to continue discussions with the Teamsters Union), other problems remain.
In addition to delays, seafood importers are most worried about the proposed surcharges. However, because seafood is a “small percentage” of the goods shipped into the Port of Los Angeles, Stern said, “If enough people complain from other industries, maybe we have a chance.”
Importers and brokers may get a reprieve because the FMC said it would have attorneys review the surcharge policy, according to Clarke.
A few months ago, the carriers petitioned the FMC to revise the surcharges “in the dark of the night,” Clarke said. “As far as we can determine, the public didn’t really know about it, the seafood industry didn’t know about it and it got approved.”
