How to Deal with Peak Season Surcharge (PSS) in Ocean Freight: Essential Strategies for Shippers

 Understanding the structure of PSS（Peak Season Surcharge） and the strategies to cope with it will not only help you better plan logistics expenses but also avoid unnecessary additional charges during peak times. Below is a detailed explanation of PSS and the strategies we offer to help you manage it.

What is PSS?

PSS is a temporary surcharge added by shipping lines during the peak shipping season. As demand for shipping increases during this time, carriers often pass on the increased operational costs to shippers due to vessel and space shortages. PSS fees typically occur during peak periods such as the Christmas season (October to December), Black Friday (November), and back-to-school season (July to August) in the European and North American markets, and before Chinese New Year (January to February), Double 11 preparation (September to October) in the Asian markets.

How is PSS Calculated?

The calculation of PSS fees varies by route and container type, and is typically charged according to the following standards:

By container type: For example, a 20-foot GP container may incur an additional fee of about $800, while a 40-foot HQ container may incur an additional fee of about $1200.

By cargo value percentage: In some cases, certain routes may charge PSS based on the cargo value (e.g., 3% of cargo value for routes from Asia to South America).

Since shipping lines generally have pricing power during the peak season, shippers often cannot refuse to pay the PSS. Refusing the surcharge may result in cancellations or delays in shipping plans.

Impact of PSS

The increase in PSS fees, especially during peak periods, can put significant pressure on your overall shipping costs. If not managed properly, it could lead to:

Increased shipping costs: The rise in PSS fees results in higher overall freight charges, affecting your logistics budget.

Delivery delays: The tight capacity during peak season may cause delays in schedules, leading to uncertainty in delivery.

Reduced customer satisfaction: Rising shipping costs may affect the prices you offer to end customers, resulting in a decrease in customer satisfaction.

How to Minimize PSS Expenses?

Lock in rates early: It is advisable to sign long-term agreements with us or the shipping line 2-3 months before the peak season to secure stable pricing and negotiate a PSS cap where possible.

Choose alternative routes: If the PSS fees for your planned route are too high, consider alternative ports or routes (e.g., East Coast or Canadian ports) to alleviate the cost burden.

Flexible transport options: For urgent small-batch shipments, consider air freight or rail transport (such as China-Europe trains) as alternatives to avoid congestion during the peak shipping season.

Negotiate discounts and offers: If your shipment volume is large, work with us to negotiate discounts for PSS fees with the carrier. Typically, shippers with significant volumes may qualify for reduced fees or partial waivers.

Conclusion and Recommendations

The fluctuation of PSS fees is a common occurrence in the ocean freight market. As a shipper, proactive awareness and effective strategies are key to minimizing the risks associated with these surcharges. We recommend that you plan ahead, be flexible with your transportation options, and set clear PSS caps in your contracts to ensure smooth transportation and manageable costs.

If you need more information on how to handle PSS fees or wish to get a tailored shipping solution, please don’t hesitate to contact us. We are committed to providing you with the highest quality service to help you stay competitive during the peak season.

Contact us to learn more about transportation strategies and make your logistics more efficient and cost-effective.