CH Robinson Announces Drayage Congestion Surcharges

·1 min read

Freight broker C.H. Robinson said it would begin levying drayage surcharges in September due to worsening congestion at U.S. ports.

"As you are aware, the past year has brought about unprecedented challenges for the transportation industry. Recently, it has reached a breaking point," a Thursday client advisory read." As a result, international drayage carriers servicing several ports/ramps through the U.S. have implemented congestion/peak season surcharges."

Beginning Wednesday, a surcharge of $175 per container will apply to all inbound and outbound full-containerload cargo serviced at most of the nation's top container ports. The fee will also apply to all rail locations in Atlanta. The notable exceptions were Norfolk, Virginia, and Oakland, California, where the incremental fees will not be assessed.

C.H. Robinson (NASDAQ: CHRW) said the surcharges will carry through the end of the year "at which time we will reevaluate."

The service advisory pointed to increased import volumes and a lack of labor and equipment as some of the reasons for elevated dwell times and congestion.

"What the industry hoped would be a short-term challenge is now forecasted to last well into Quarter 1 2022," the notice continued. "Due to this situation that is beyond our control, this fee will apply on door moves to/from the terminals."

The company will also be implementing an origin congestion surcharge for Shenzhen, China, which will begin on Sept. 6. A "significant increase" in operational costs at the port in recent weeks was the explanation given.

Click for more FreightWaves articles by Todd Maiden.

Image by Jason Goh from Pixabay

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