Detour Costs Soar! Shipping Lines Issue Typhoon Season Surcharge Notices
I. Current State of the Shipping Market in Typhoon Season: Detours Become Routine, Cost Pressures Surge
In September 2025, the Northwest Pacific entered an active typhoon season, with Super Typhoons “XX” and “YY” forming consecutively, forcing vessels on multiple international routes to detour to avoid the storms. While this measure ensures navigational safety, it has led to a sharp rise in shipping costs:
- Increased Detour Distance: Asia-US West Coast routes are diverting east of Taiwan, adding 500-800 nautical miles per voyage and increasing fuel consumption by 15%-20%.
- Higher Time Costs: Originally 14-day voyages are now extended to 17-19 days, causing delays that ripple through supply chains.
- Surcharges Rolled Out: Major carriers like Maersk, MSC, and COSCO collectively announced “Typhoon Contingency Surcharges” in early September, ranging from $200-$500/TEU, with some routes seeing increases of over 30%.
Industry Data: According to the Shanghai Shipping Exchange, the average detour cost for Asia-North America routes from August to September 2025 increased by $120 million compared to the same period last year, hitting a record high.
II. Analysis of Carrier Surcharges: Who Bears the Cost?
1. Main Types of Surcharges and Their Impact
Surcharge Name | Fee Structure | Applicable Scenario | Shipper Recommendations |
---|---|---|---|
Typhoon Contingency Surcharge | $200-$500/TEU | Route detours or port closures | Lock in rates with long-term contracts |
Bunker Adjustment Factor (BAF) | Floats with fuel costs | Extended voyages increase fuel use | Opt for low-sulfur fuel routes |
Port Congestion Surcharge (PCS) | $100-$300/TEU | Berthing queues at diversion ports | Reroute cargo to less congested ports |
2. Key Controversies
- Fairness Debate: Some shippers accuse carriers of “using typhoons as an excuse to pass on costs,” especially when sudden fees are imposed on long-term contract clients.
- Transparency Issues: Surcharge calculations lack detailed disclosure—for example, MSC states fees are “based on actual detour losses” without third-party audits.
Case Study: During Typhoon “Haishen” in 2024, the Japan Shippers’ Association sued a carrier for duplicate detour surcharges, resulting in an out-of-court settlement.
III. How Can Shippers Mitigate Cost Pressures?
1. Short-Term Strategies
- Freight Hedging: Use Forward Freight Agreements (FFAs) to lock in rates for the next three months, offsetting spot market volatility.
- Multimodal Alternatives:
- Shift China-Europe cargo to rail (e.g., the Chongqing-Europe Express, with stable transit times of 18-20 days).
- For intra-Asia routes, adopt feeder vessel + mother vessel transshipment models.
2. Long-Term Supply Chain Optimization
- Contract Negotiations: Add “extreme weather surcharge caps” (e.g., no more than 10% of base freight) to annual agreements.
- Inventory Adjustments: Extend safety stock cycles from 30 to 45 days to buffer against typhoon-related delays.
3. Tech-Driven Cost Savings
- AI Route Prediction: Platforms like Windward analyze typhoon paths to plan optimal detours 72 hours in advance, saving 5%-8% in fuel costs.
- Blockchain Audits: TradeLens automates verification of detour distances against surcharges, reducing disputes.
IV. Industry Calls for Collaborative Typhoon Season Mechanisms
1. Carrier Responsibilities
- Cost Transparency: Disclose raw data on detour fuel usage and port fees, subject to third-party oversight.
- Differentiated Fees: Waive surcharges for urgent shipments like medical supplies and perishables.
2. Policy Support
- Port Emergency Funds: China’s Ministry of Transport plans to establish “typhoon season demurrage subsidies” to ease shipper burdens.
- Global Coordination: The International Chamber of Shipping (ICS) proposes a “Trans-Pacific Detour Slot Pool” for shared capacity during typhoons.
V. Outlook and Action Plan
Meteorological agencies forecast 3-4 more typhoons affecting East Asia routes from September to October 2025. Shippers must act now:
- Priority Shipments: Pay premiums for “guaranteed space” agreements to ensure reliability.
- Insurance Review: Confirm whether policies cover “detour delay losses” (most marine insurance excludes this).
- Supplier Coordination: Share typhoon alerts with supply chain partners to adjust delivery schedules.