**Surcharge Delayed Following Report of New Longshore Contract Negotiations**
CMA CGM, a major ocean container carrier, has decided to postpone a significant U.S. surcharge, opting to implement two related surcharges later this month instead. The French shipping line has moved the start date of a peak-season surcharge of $1,500 per unit—applicable to cargo transported from the Indian subcontinent, Middle East Gulf region, Red Sea, and Egypt to the U.S. East and Gulf coasts—from January 1 to January 15.
While peak season surcharges are common, this delay comes amidst reports that negotiations are set to resume soon between the International Longshoremen’s Association (ILA) and the United States Maritime Alliance (USMX) regarding a new agreement. Although neither party has officially confirmed the resumption of talks, sources indicate that informal discussions have been taking place since the ILA withdrew from negotiations in November.
CMA CGM’s handling of the Mideast-U.S. surcharge is noteworthy, as it has reportedly been the only major container line that continued to operate in the Red Sea amid attacks on merchant vessels by Yemen-based Houthi forces. Other carriers have diverted their services along longer, more expensive routes connecting Asia to Europe, the Mediterranean, and the U.S. around the Horn of Africa.
CMA CGM did not respond immediately to requests for comment. Additionally, starting January 18, the company will introduce a peak-season surcharge on containers moving from the Mediterranean to U.S. East and Gulf Coast ports. These surcharges will be $1,300 for 20-foot containers, $2,000 for 40-foot containers, and $2,500 for 45-foot containers. For refrigerated containers, the surcharges are $1,300 for 20-foot units and $2,500 for 40- and 45-foot reefers.
The Mediterranean surcharges will apply to cargo from ports including Marseilles-Fos (France), various ports in Portugal, Italy, Spain (such as Algeciras, Valencia, Barcelona, Sagunto, and Vigo), and Morocco. They will not, however, apply to out-of-gauge oversize freight or pre-breaking-bulk shipments requiring advance payment before unloading.
These peak-season surcharges follow CMA CGM’s recent introduction of a Panama Canal Transit surcharge, effective January 1, 2025. The charge is set at $150 per twenty-foot equivalent unit for shipments from the South America west coast via the Panama Canal to the U.S. and Canada.
The Panama Canal Authority has implemented a new booking reservation system—the Long-Term Slot Allocation (LoTSA)—to manage canal crossing reservations, contributing to increased operational costs for CMA CGM. The same charge applies to services between the South America west coast and South America east coast, as well as cargo from South America west coast to Guyana and northern Brazil, effective January 5.
