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MSC takes the lead in announcing the collection of a low - water - level surcharge, and the European inland transportation industry faces challenges.
Category: Industry TrendsDate: August 19, 2024 14:28Source: Shanghai Zhongshen International Trade Co., Ltd.
Home»Industry Trends» MSC takes the lead in announcing the collection of a low - water - level surcharge, and the European inland transportation industry faces challenges.
Due to the rapid decline in the water level along the Rhine River, barge operators have started to levy a Low Water Surcharge (LWS). MSC took the lead in announcing that after the water level of the Rhine River dropped below 150 cm, it would pass on the LWS levied by its barge operator partners for services to and from Antwerp and Rotterdam to customers.
Last year, the water level of the Rhine River dropped to 32 cm, forcing the closure of the Rhine River. Although the current water level is far from reaching last years level, due to the reduction in transportation capacity, the arrival at the ports of Antwerp and Rotterdam cannot be guaranteed. In addition, all costs incurred under such circumstances, such as detention fees, demurrage fees, and storage fees, are not borne by MSC.
The Rhine River is divided into four sections: Duisburg, Emmerich, Kaub, and Cologne. The transportation capacity of each section may be different. The transportation capacity of Kaub is less than 81 cm, and the carriers obligation to transport along the Duisburg section terminates when the water level is 181 cm.
MSC pointed out that low water surcharges only apply to domestic and international transport via barge or barge-road transport along the Rhine from Antwerp and Rotterdam to Germany, France and Switzerland. Feeder services between Antwerp and Rotterdam are unaffected.
Shippers have grown accustomed to chaos in European inland transport, where congestion often lasts for days. A former barge owner said the surcharge news just adds to the difficulties shippers trying to use European transport are grappling with, adding that the entire industry remains in serious crisis.,
According to sources: In Belgium alone, more than 275 transport companies (mainly trucking firms) have filed for bankruptcy this year. The inland shipping industry faces many challenges, such as vessel oversupply and declining transport demand. This has led to falling freight rates.,
However, the former owner noted that despite declining cargo volumes, container capacity saw significant growth, up 10.95%, marking the 11th consecutive year of growth, and said barge operators need to improve efficiency.
They stated: Theres no doubt low water conditions on the Rhine will lead to a shift to road transport - rail cant handle such volumes - which will exacerbate already severely congested road networks.,