Why Do You Pay PSS? The Truth About Shipping's Peak Season Surcharge

What Exactly Is PSS?

PSS (Peak Season Surcharge) is a temporary fee carriers impose during high-demand periods to cover:

• Extra vessel deployments

• Port congestion costs

• Equipment shortages

Who Pays?

• Initially charged to shippers/forwarders

• Often passed to end consumers (adding 3-5% to product costs)

When PSS Hits Hardest

Annual Peaks:

• Q4 (Oct-Dec): Christmas + Black Friday

• Q3 (Jul-Aug): Back-to-school (US/EU)

• Q1 (Jan-Feb): Pre-Lunar New Year (Asia)

Crisis-Driven:

• 2020: PPE shipments → $2,500/FEU surcharges

• 2022: Russia-Ukraine war → 12% PSS on Europe routes

The Math Behind PSS

Typical Rates:

Carrier Clauses:

"Surcharges may be applied without prior notice"
– Standard ocean contract terms

5 Smart Ways to Reduce PSS Costs

1. Early Bird Contracts

• Lock rates 90+ days pre-peak (save 20-30%)

2. Port Diversion

• Example: Shift from LA/Long Beach to Savannah (PSS $400 lower)

3. Modal Shift

• Air freight for urgent ≤2 CBM shipments

• Rail for China-Europe (15-day transit vs. 35-day sea)

4. Volume Discounts

• Negotiate PSS waivers for 100+ TEU commitments

5. Digital Tools

• Use freight analytics platforms to predict PSS spikes

Red Flags to Watch

⚠️ Hidden Fees: 67% of forwarders omit PSS in initial quotes
⚠️ Targeted Surcharges: China exports face 15% higher PSS vs. India
⚠️ Fake Peaks: Carriers sometimes impose PSS during slack seasons

Pro Tip: Demand "All-in" quotes and archive rate sheets for dispute evidence.