What is port congestion surcharge?

A port congestion surcharge is an additional fee imposed by shipping companies to cover the increased costs associated with delays in loading and unloading cargo at ports. This surcharge typically arises during periods of high traffic or logistical disruptions, where vessels are unable to dock or are delayed for extended periods. The fee aims to compensate for the extra operational expenses and inefficiencies incurred during such congestion. Ultimately, it is passed on to shippers and, subsequently, to consumers.