What is the effect of Peak Season Surcharge on import and export?

11 de May de 2022

Cargo movement to import or export has its largest volume moved by ships and planes, throughout the year almost incessantly.

During this movement, peaks in demand may occur that a part or the entire maritime and air transport system is not fully capable of meeting..

As dictated by the law of supply and demand, the greater the demand and the less the supply., more expensive a product or service can become, and this is no different for import and export.

Like this, we will cover in this article the full meaning of Peak Season Surcharge (PSS) and what are the possible consequences of ignoring the PSS.

 

Peak Season Surcharge: demand taxation

As in any purchase and sale operation, the difference between supply and demand, can significantly change the purchase costs of a product or service.

And that no different in sea and air transport. For periods when demand is close to system capacity or the system is already at full capacity, existe o Peak Season Surcharge, or simply PSS.

PSS is nothing more than an extra tax in periods of high demand, as in commemorative seasons, for example.

This fee can greatly increase the cost of transport and make some businesses unfeasible., mainly for products that need a lot of space to be moved by sea or air transport.

Other reasons for PSS

In addition to the increase in demand, there may be other reasons for applying the PSS. These extra reasons, also impact the movement of sea or air cargo, so much for import how much export. In this way the PSS can be applied.

The other reasons that generate the application of PSS are:

  • Reduction of manpower;
  • Delay in the departure procedure of ships and planes;
  • Lack of space on ships or planes (overbooking).

With the delay or lack of resources that allow a correct operation, sea ​​and air transport is compromised, unable to operate at full capacity, thus generating PSS out of season of high demand.

What are the peak demand seasons??

As most shopkeepers anticipate the purchase of merchandise to stock up for large volumes of sale in a special season, like christmas, a few months before these dates usually have a PSS charge.

No brazil, for import, PSS is usually charged between the months of May and September, since it precedes children's day and christmas. After all, various types of goods need to be in stores to enable sales in as large a quantity as possible.

Besides that, During this period, factories increase production volume to be able to deliver on time, demanding a greater amount of raw material, what increases even more the demand for imports.

already for export, leaving Brazil, which most affects the capacity in the movement of sea and air cargo, are the Chinese New Year holidays and the Golden Week holiday in Japan, already in the months before, the volume of cargo destined for Japan and China increases a lot.

 

Is there a way to avoid PSS??

There is no way to avoid paying the PSS when the product needs to be transported in the high demand months of the maritime or air system, which consequently increases the cost of international shipping.

however, how the PSS is usually applied in known periods, it is possible to plan to avoid using the Sea freight and air in high demand season, so as not to have the PSS.

In this way, the most common is to anticipate the import for periods of normal or low demand in the system., may even have lower shipping costs.

Besides that, during the PSS period, it is advised to split the cargo into different ships, to prevent everything that has been imported from getting stuck on ships that cannot anchor due to lack of space or overload of the unloading system.

To learn more about PSS and the best way to avoid incurring an extra fee, contact Open Market.

inflationary pressure on food may end up emerging, inflationary pressure on food may end up emerging inflationary pressure on food may end up emerging.

inflationary pressure on food may end up emerging. We are not Facebook, Instagram e LinkedIn.

Open Market - Foreign Trade

What is the import license and what is its importance for the process?

10 August of 2022

View more

Withdrawal of the value of the foreman is enacted by the decree 11090/22

5 August of 2022

View more

Understand everything about the trade balance and how it works

13 de July de 2022

View more

How does ocean freight work and what are its types?? Find out in this article!

6 de July de 2022

View more