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ChargesPSS

Peak Season Surcharge

A surcharge carriers add during periods of high demand.

What is Peak Season Surcharge?

A peak season surcharge (PSS) is an additional charge that carriers add to base freight rates during periods of high demand, when capacity is tight and space is scarce. In ocean shipping it is usually announced per container for specific trades and origins, while in air freight it is typically charged per kilogram; NVOCCs and forwarders often pass carrier surcharges through to their own customers. Peak periods vary by trade, often linked to pre-holiday retail stocking and to production ahead of Lunar New Year, and carriers also introduce surcharges when disruptions reduce capacity. Whether a PSS applies to a specific shipment depends on the contract: service contracts and rate agreements may include it, exclude it, cap it or make it subject to separate notice. In US ocean trades, a new or increased charge in a carrier's or NVOCC's public tariff cannot take effect earlier than 30 calendar days after publication under 46 CFR 520.8.

Why it matters for forwarders

For forwarders, PSS is a pricing and contract risk rather than a fixed cost: a quote that does not say whether PSS is included can become loss-making when a surcharge is announced between quotation and shipment. State quote validity clearly and whether rates are all-in or subject to surcharges in force at the time of shipment, and pass carrier PSS through only as the customer contract allows. Check which date the tariff or contract uses to determine the applicable rate, such as receipt or loading, rather than assuming the booking date governs. For US tariff shipments, compare carrier announcements with tariff publication dates, because an increase that has not been published for 30 days cannot yet be applied. In annual contract negotiations, shippers with volume commitments may seek PSS caps or exemptions in exchange for allocation commitments.

PSS FAQ

Can carriers apply a peak season surcharge to contract rates?

Only if the contract allows it. Many service contracts make rates subject to tariff surcharges, while others fix all-in rates or cap surcharges, so the contract wording decides.

When is peak season in shipping?

It differs by trade. On many Asia export lanes demand rises ahead of Western year-end retail seasons and before Lunar New Year factory closures, but carriers announce PSS whenever demand outstrips capacity.

How much notice must carriers give for a peak season surcharge in US trades?

Under 46 CFR 520.8, a new or increased tariff charge cannot take effect earlier than 30 calendar days after publication. Service contract cargo follows the contract terms instead.

Who pays the peak season surcharge?

The party that pays the main freight under the sale terms bears it, so usually the seller under CFR, CIF, CPT and CIP and the buyer under FOB and FCA. Forwarders pass it on according to their quote or contract with the customer.

Sources

  1. 46 CFR 520.8: Effective dates, Legal Information Institute, Cornell Law School

Rules and figures change. Check the current text with the issuing body before relying on it.

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