Ocean Freight Surcharges
PCS Surcharge (Port Congestion Surcharge)
PCS (Port Congestion Surcharge): Surcharge for delays caused by port congestion. When it applies, typical range, and who pays under common Incoterms.
- Code
- PCS
- Name
- Port Congestion Surcharge
- Typical range
- $100-$1,000+ per TEU during severe congestion
- Routes
- Any route affected by congested ports
Port Congestion Surcharge (PCS) is an additional fee imposed by shipping lines when ports experience severe congestion that causes significant delays in vessel berthing, cargo handling, or container availability. This surcharge compensates carriers for increased costs due to longer waiting times, schedule disruptions, and operational inefficiencies.
Congestion can be caused by: • Labor strikes or disputes • Infrastructure limitations during peak seasons • Weather events or natural disasters • Pandemic-related disruptions • Rapid increases in cargo volumes • Equipment or chassis shortages
PCS is typically announced with 2-4 weeks notice and remains in effect until congestion subsides. The charge varies based on the severity of congestion and can be imposed at origin, destination, or transshipment ports.
During the 2020-2022 supply chain crisis, PCS became a major cost factor at ports like Los Angeles, Long Beach, Savannah, and various European terminals.
When PCS applies
During periods of significant port congestion. Temporary but can last months.
Who pays PCS under common Incoterms
- FOB: buyer
- CIF: negotiable
- EXW: buyer
- DAP: seller
How to minimize PCS
- Use alternative ports when possible
- Plan shipments outside peak congestion periods
- Negotiate PCS caps in contracts
- Consider inland point intermodal options
- Monitor port congestion reports proactively
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Frequently asked questions
What is the PCS surcharge?
PCS stands for Port Congestion Surcharge. Surcharge for delays caused by port congestion.
When does PCS apply?
During periods of significant port congestion. Temporary but can last months.
How much is PCS?
The typical range is $100-$1,000+ per TEU during severe congestion. Confirm the current amount with your carrier or forwarder.