FMC Approves Red Sea Surcharge for Outbound US Shipments
The Federal Maritime Commission on Jan. 11 approved a new surcharge on certain outbound shipments handled by Vanguard Logistics. The approval allows the California-based logistics firm to immediately begin charging the fees -- which the company is using to make up for added costs from trade disruptions around the Red Sea -- as opposed to giving 30 days' notice.
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Vanguard submitted its request just one day earlier, telling the FMC that Houthi rebel attacks on cargo ships in the Red Sea have made it “too dangerous” for vessels to transit the Suez Canal. The company said it has “borne increased operational costs due to the longer voyages and heightened concerns about cargo security,” which are “directly related to the risks in the Red Sea.” It also said it expects to face increased costs “for the foreseeable future as Houthi militants reportedly increase their attacks on commercial vessels.”
The FMC approved a new “operation recovery surcharge,” effective Jan. 11, for all exports Vanguard handles that are leaving ports and feeding terminals on the U.S. East and Gulf coasts and destined to Asia and specific ports in the Red Sea, Middle East and East Africa. The charges range from $8 weight/measurement to $60 w/m.
The FMC approval comes after the commission authorized a string of similar Red Sea surcharges for vessels traveling from Asia and the Middle East to the U.S. East Coast and Europe. Shipping industry officials are expecting the added fees and shipping delays to last months (see 2401050066).