When is a contract a contract?
The steamship companies are very creative in their ability to use surcharges. They have CAF (currency adjustment factor), Pss (peak season surcharge), EBS (emergency bunker surcharge) and the list goes on.Â
The reason I mention this is because we have just entered the Peak Season Surcharge time frame from August 1 through Oct 31. We at Noon International negotiated several months before a contract with the steamship company that was (or we thought) was to be an all inclusive rate from China to Australia.  The rate would be fixed with no increases for surcharges of any sort.Â
Well, we were advised in early August that we would be subject to the surcharge of $500 per 40 ft container load. We argued with the steamship company but it was hopeless. We could pay the $500 and get the bill of ladings or not pay and have the cargo sit in China.
PaiPai in our office negotiated diligently and got them to reduce the rate from $500 to $250 for the PSS season, for which we had to sign an amendment. This was to go into effect immediately but the steamship office in China claims they were never notified, hence, the rate remains $500. After much more going back and forth it now appears that we will get the reduction but no rebate on the containers we already had to pay the $500 PSS.
Now I wonder if all other companies that use the steamships are paying $500 and we only $250 who will get the containers?Â
We are at the mercy of the steamship companies, if we were to take legal action and win, we would more than likely get no containers. I just wonder if we could pass on the PSS to our customers? Not very likely.
So when is a contract a contract?
Technorati Tags: Noon International, PSS, surcharges, ocean freight, China
