- Per container charge is only one of its kind in U.S.; impacts global competitiveness, regional employment and growth and exports -
Florham Park, New Jersey, February 4, 2015 – In Albany, New York, SB 2648, legislation to eliminate the Container Freight Charge (CFC) was approved by the Senate Corporations, Authorities, and Commissions Committee February 2, 2015. The bill has been referred to the Senate Finance Committee. This legistlation has also been introduced in the NY State Assembly, A 2070. In 2014, New Jersey Governor Chris Christie signed S2747/A4170 into law to eliminate the Port of New York & New Jersey (PANYNJ) cargo facility fee. The CFC port fees will remain until New York’s legislative bodies vote, as New Jersey did last year, to eliminate these added costs.
The Port Authority of New York and New Jersey (PANY/NJ) is the only port in the U.S. to impose a cargo facility charge on all containers, including empties. $4.95 is charged for 20-foot containers, $9.90 for 40-foot containers, and $1.11 per unit for vehicle cargo. The Port of NY/NJ is the most expensive port in the United States to process a container. These fees drive the cost of using the Port even higher.
As reported by Kevin Lyons, Ph.D., Rutgers Business School, Center for Supply Chain Management and Marketing Sciences, most consumers throughout and at the end of the supply chain would never know anything about the CFC but it could affect their bottom-line. The New York metropolitan area has many manufacturers that strive to be globally competitive. The ability to export products is directly impacted by shipping costs, CFC is an added cost. In addition, employment and economic growth is affected by these added charges.
"This fee is costing ocean carriers $30 million a year which exacerbates the extremely challenging financial environment ocean carriers have faced in recent years. Only three carriers have made a profit the last couple of years. We are optimistic that the NY State Senate and Assembly will recognize how critical removing these fees are to local businesses, the economy and the maritime industry as a whole," said Timothy Simpson, Maersk Line, Director of Marketing & Communications for North America.
Related Document (PDF):
Supply Chain Management and Marketing Sciences Center for Supply Chain Management Report, January 10, 2015 - Kevin Lyons, Ph.D., Rutgers Business School
About Maersk Line
Maersk Line, a trusted global transportation company and a division of the Maersk Group, is dedicated to delivering the highest level of customer-focused, reliable global ocean transportation services.
The Maersk Line global service network penetrates the world’s major ports and local markets directly and via dedicated feeder networks. This broad and extensive network is supported by a global staff of 25,000 employees in 325 offices, located in more than 125 countries. Resources to ensure exceptional service performance include: 3.4 million containers—including 10,000+ flat-rack and open tops, and over 600 container vessels that are among the most modern, secure, and environmentally friendly to sail the oceans.
Maersk Line is committed to innovating to deliver industry-leading on-time delivery, faster and easier ocean freight processes and support, and environmental sustainability.
Contact: Timothy Simpson, Maersk Line, Director of Marketing & Communications for North America - 973-514-5569