A port congestion surcharge (PCS) is an extra fee a shipping line adds per container when a port is so congested that vessels wait at anchor or terminals slow down, raising the carrier's costs. CMA CGM and other lines have applied congestion surcharges at Canadian East Coast ports, including Montreal, during periods of high dwell times and container backlogs.
Key takeaways
- Congestion surcharges are temporary and announced through carrier advisories, usually with a few weeks' notice.
- They are charged per container, often with different amounts for 20ft, 40ft and reefer units.
- They appear most often during peak seasons, labour disruptions, rail slowdowns and winter.
- You can't avoid a surcharge once it applies, but you can plan routings and budgets around it.
Why congestion surcharges happen
| Cause | Effect on carriers |
|---|---|
| Vessel queues at anchor | Ships lose days, schedules slip |
| High yard density | Slower discharge and loading |
| Rail slowdowns | Import boxes pile up at the port |
| Labour disruptions | Terminals slow or stop |
| Winter conditions | Reduced productivity, especially on the St. Lawrence |
When these problems pile up, carriers use surcharges to recover extra costs such as fuel, charter hire and schedule recovery.
Canadian East Coast examples
In late 2024, CMA CGM announced port congestion surcharges on cargo moving through Canadian East Coast ports, as dwell times rose and containers backed up after labour disruptions and seasonal pressure. Other carriers have taken similar steps at different times. Surcharges are usually lifted once conditions improve.
How to handle congestion surcharges
- Watch carrier advisories. Surcharges are published on carrier websites and sent to customers.
- Check your contract. Some contracts cap or exclude certain surcharges.
- Compare gateways. When Montreal is congested, Halifax or Saint John may be alternatives, and vice versa. See Halifax port tariffs and Port of Montreal tariffs.
- Move boxes out fast. Congestion also raises your storage and demurrage risk. See demurrage and storage fees.
- Line up drayage in advance. Carriers in Montreal, Halifax and Saint John with yard space can pre-pull containers.
- Build surcharges into landed-cost estimates during peak season.
Frequently asked questions
What is a port congestion surcharge?
It is a temporary per-container fee that shipping lines add when congestion at a port raises their operating costs.
Who pays the congestion surcharge?
The party paying the ocean freight, which is the shipper or consignee depending on the Incoterms.
How long do congestion surcharges last?
Until the carrier decides conditions have improved. Carriers announce both the start and end dates.
Can I avoid a congestion surcharge?
Not once it applies to your booking, unless your contract excludes it. You may be able to route through another port.
Which Canadian ports have seen congestion surcharges?
East Coast ports, including Montreal, have seen them during periods of high dwell times. West Coast ports have also been affected during disruptions.