CMA CGM imposes surcharge on outbound cargo from South America's largest container terminal (Brazilian port company is persuading)
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Time of issue：
2024-06-14 18:02
Carolina Brown, TCP commercial director of Brazil's Paranagua Port Project (TCP), said the company is trying to dissuade a logistics company from imposing a surcharge on outbound cargo at South America's largest container terminal.
The $150 surcharge for CMA CGM, a French-based logistics company, will take effect on July 1 and could affect the cost of moving goods through Brazil's main reefer container terminal, which is also the world's largest chicken export corridor.
"We have reached out to the CMA to first ask them to clarify the measure and also ask them to review it," Brown told Reuters late on Wednesday."
The company announced the surcharge last week, citing "congestion" in the port of Paranagua ". The move highlights the logistical challenges facing Brazil, an agricultural powerhouse and one of the world's top 10 economies.
The CMA said the surcharge would apply to shipments to the US East Coast, US Gulf, Canada, Mexico and Central America.
Brown said paper, timber and refrigerated cargo consignments could be affected if the surcharge is confirmed.
The executive said Paranagua and other Brazilian container ports are facing a surge in demand, which, combined with operational contingencies at competing terminals in the states of Santos and Santa Catarina, has triggered "a perfect storm".
Felipe de Frana, TCP operations manager, said the increased demand had led to an increase in ship waiting times from a record average of 3.5 hours in Paranagua to nearly 48 hours in recent weeks. He said that the waiting time at the Paranagua container terminal had been reduced to about 12 hours, while ships at the center of the competition still had to wait a week.
The container terminal at Paranagua is also receiving cargo and ships from other ports, Brown said.
"There are no operational restrictions on our operations," she said." "In contrast, the surcharge does not reflect the level of our service."
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