Container carriers are preparing to impose a peak season surcharge (PSS) on cargo moving from the Middle East and Indian Subcontinent (MEISC) to North America, citing capacity constraints, firm demand and rising operational costs on the trade lane.
According to market sources, the PSS is expected to take effect in the coming weeks and will apply to shipments destined for both the US East Coast and US West Coast, as well as Canada. The surcharge is likely to cover all container types, including dry, refrigerated and special equipment, though exact levels and start dates will vary by carrier.
Shipping lines point to a combination of factors driving the move. Export demand from India and neighbouring markets remains resilient, supported by strong shipments of engineering goods, textiles, chemicals, pharmaceuticals and agricultural products. At the same time, carriers are managing tighter vessel space as fleet redeployments and blank sailings continue to affect capacity availability on long-haul routes.
Operational pressures have also increased costs for carriers. Longer voyage times, port congestion at key transhipment hubs, higher fuel expenses and equipment imbalances are all contributing to the decision to introduce the surcharge. Carriers note that the PSS is intended to offset these cost pressures while ensuring service reliability during a period of sustained demand.
Freight forwarders say the surcharge could add further cost pressure for exporters already contending with elevated base freight rates and ancillary charges. Many shippers are now reviewing shipment schedules, accelerating bookings where possible or seeking longer-term rate agreements to mitigate the impact of additional surcharges.
Industry participants expect carriers to issue formal advisories detailing the surcharge amount, validity period and scope in the coming days. While PSS measures are typically temporary, market watchers say the duration will depend on how demand, capacity and operational conditions evolve on the MEISC–North America trade lane.
The development underscores continued volatility in container shipping pricing, with carriers using surcharges as a tool to manage peak demand periods and cost fluctuations, even as global supply chains adjust to shifting trade patterns.
