Low Water Surcharge (LWC) – World to/from Paraguay

Maersk Adjusts Pricing Amidst Global Waterway Challenges

In response to evolving waterway conditions that impact global shipping, Maersk is introducing a Low Water Surcharge (LWC) for all 20 and 40-foot containers traveling to and from Paraguay.

This surcharge, effective on all container shipments, is a reflection of the persistent challenges faced by the shipping industry as global water levels fluctuate.

To determine the LWC, Maersk utilizes specific criteria based on booking type:

• Non-SPOT Bookings: For bookings not made through the Federal Maritime Commission (FMC), the surcharge is calculated using the Price Calculation Date (PCD), which corresponds to the scheduled departure date of the initial water leg at the time of booking confirmation. For FMC bookings, PCD refers to the last container gate-in date for non-SPOT bookings.
• SPOT Bookings: The surcharge is determined based on the Estimated Time of Departure (ETD) of the first vessel at the time the booking is confirmed.

adding transparency, Maersk has provided sample corridors and rate structures for reference, including the Asuncion Terport Villeta, Paraguay to Algeciras, Spain route, effective Febuary 1st, 2025, until further notice.

Navigating the Impact on Logistics

While these rates provide a clear framework, it’s crucial for shippers to remember they might potentially be subject to additional surcharges, including local charges and contingency fees. Maersk emphasizes that these rates are independent of any tariffs notified, published, or filed according to local regulatory requirements.

For shipments governed by the US Shipping Act or the China Maritime Regulations,any quotations or surcharges deviating from the Maersk tariff will not be legally binding unless they are included in a service contract or service contract amendment filed with relevant regulatory bodies,such as the Federal Maritime Commission (FMC) or the Shanghai Shipping Exchange.

Maersk Implements Low Water Surcharge for Paraguay Trade

Maersk, a global leader in shipping and logistics, recently announced a Low Water Surcharge (LWC) for all containers moving to and from Paraguay. This decision comes in response to challenging waterway conditions on the Río Paraguay, exacerbated by a prolonged drought. Javier Rodriguez,Maersk’s Head of global Trade for South america,shed light on the reasons behind this surcharge and its implications for shippers.

“The decision to implement the LWC for Paraguay is driven by the challenging waterway conditions we are currently experiencing on the Río Paraguay,” explained Rodriguez. “The prolonged drought has substantially impacted water levels, making navigation more complex and potentially disrupting our service schedules. This surcharge is a necessary measure to ensure the continued reliable and efficient delivery of goods for our customers.”

Rodriguez emphasized that the surcharge rate is calculated based on specific criteria,including the Price Calculation Date (PCD) for non-SPOT bookings and the Estimated Time of Departure (ETD) for SPOT bookings. Detailed rate structures, tailored to specific corridors like the Asunción Terport Villeta, PY to algeciras, ES route, provide transparency and clarity for customers regarding the applicable surcharge.

While the LWC is the primary surcharge impacting Paraguay trade, Rodriguez cautioned that other charges, such as local charges and contingency charges, may apply depending on the trade route and specific circumstances. He urged customers to carefully review the details outlined in their service contract or amendment and reach out to Maersk’s team for any questions.

Rodriguez offered valuable advice to shippers facing the impact of the LWC. “We understand that any surcharge can impact our customers’ operations,” he stated. “We encourage them to engage with us proactively to discuss their individual needs and explore options for optimizing their shipments. Additionally, staying informed about any updates or adjustments to our surcharge policies is crucial. Given the dynamic nature of global trade, especially in regions impacted by climate variability, it’s essential for shippers to anticipate and adapt to evolving conditions.”

Maersk’s proactive approach, coupled with transparent communication and customer-centric solutions, aims to mitigate the challenges posed by the evolving waterway conditions in Paraguay. Shippers, however, are advised to stay informed, engage with Maersk, and adapt their operational strategies to navigate these complexities effectively.

A River Runs Through It: Addressing the Challenges of Changing Waterways

Water is the lifeblood of any nation,especially those reliant on waterways for transportation,agriculture,and industry. But across the globe, changing waterway conditions pose a meaningful threat to these vital ecosystems and the communities that depend on them.

Paraguay, a nation deeply connected to its vast river systems, is facing these challenges head-on. Javier Rodriguez, a key figure in navigating this complex issue, shares his insights.“We are actively monitoring the situation closely and collaborating with local authorities,ports,and industry partners to identify and implement enduring solutions,” he emphasizes,highlighting the importance of a unified approach.These solutions are multifaceted, encompassing a range of strategies designed to mitigate risks and ensure sustainable water management. This includes exploring alternative transportation routes to minimize disruptions caused by fluctuating water levels, investing in infrastructure improvements to enhance resilience, and advocating for policies that prioritize responsible water resource management.

The changing face of waterways is a global concern,and the approaches taken in Paraguay offer valuable lessons for other nations grappling with similar challenges.

How is Maersk calculating the Low Water Surcharge (LWC) rate?

Maersk Navigates Waterway Challenges: An interview with Javier Rodriguez

Maersk, a global player in the shipping and logistics industry, recently announced a Low Water Surcharge (LWC) for all containers moving to and from Paraguay. This decision was prompted by prolonged drought conditions and subsequent low water levels on the Río Paraguay, a vital artery for trade in the region. To shed light on the reasons behind this surcharge and its implications for shippers, Archyde News spoke with Javier Rodriguez, Maersk’s Head of Global Trade for South America.

What prompted Maersk to implement this Low Water Surcharge specifically for Paraguay?

“The decision to introduce the LWC for Paraguay is directly tied to the challenging waterway conditions we’re currently experiencing on the Río Paraguay,” explained Rodriguez. “The prolonged drought has substantially impacted water levels, making navigation more complex and potentially disrupting our service schedules. This surcharge is a necessary measure to ensure we can continue to reliably and efficiently deliver goods for our customers in this region.”

How does Maersk determine the specific rate for this surcharge?

“The LWC rate is calculated based on specific criteria,” Rodriguez clarified. “For non-SPOT bookings, the Price Calculation date (PCD), which corresponds to the scheduled departure date of the initial water leg at the time of booking confirmation, is used. For SPOT bookings, the surcharge is determined based on the Estimated Time of Departure (ETD) of the first vessel at the time the booking is confirmed. we also publish detailed rate structures for specific corridors, such as the Asunción Terport Villeta, PY to Algeciras, ES route, to provide clarity to our customers.”

Are there any othre factors shippers should be aware of regarding potential surcharges affecting their shipments to and from Paraguay?

“While the LWC is the primary surcharge impacting Paraguay trade right now, other charges, such as local charges and contingency charges, might apply depending on the trade route and specific circumstances,” Rodriguez cautioned. “We encourage customers to carefully review the details outlined in their service contract or amendment and to reach out to our team if they have any questions.”

Do you have any advice for shippers facing the impact of this low water surcharge?

“We understand that any surcharge can impact a shipper’s operations. We want to encourage them to engage with us proactively to discuss their individual needs and explore options for optimizing their shipments,” Rodriguez emphasized. “Staying informed about any updates or adjustments to our surcharge policies is crucial. Given the dynamic nature of global trade , especially in regions impacted by climate variability, it’s essential for shippers to anticipate and adapt to evolving conditions.”

Looking beyond immediate challenges, what are Maersk’s long-term strategies for navigating the changing face of waterways?

“We are actively monitoring the situation closely and collaborating with local authorities, ports, and industry partners to identify and implement enduring solutions,” Rodriguez stated. “These solutions aim to mitigate risks and ensure sustainable water management.This includes exploring alternative transportation routes, investing in infrastructure improvements to enhance resilience, and advocating for policies that prioritize responsible water resource management.

We believe that by working together and adopting a proactive approach, we can build a more resilient and sustainable future for maritime trade in regions like Paraguay. “

The global landscape of waterway transportation is undeniably changing, and Paraguay, being heavily reliant on its rivers is experiencing this shift firsthand. Maersk’s dedication to finding lasting solutions alongside its commitment to transparency and customer collaboration sends a strong message. How can other nations grappling with similar challenges learn from Paraguay’s experiences?