CMA-ERCS Extra risk coverage surcharge
Carrier SurchargesKey Information
What is CMA-ERCS?
The Extra Risk Coverage Surcharge (CMA-ERCS) is a fee applied by the shipping line, CMA CGM, to account for additional risks associated with transporting cargo through high-risk areas or handling high-risk cargo. This surcharge is implemented to mitigate the financial impact of various risks, such as piracy, political instability, or natural disasters that may affect certain shipping routes. The surcharge is typically collected by the shipping line from the freight forwarder or the shipper, who ultimately bears the cost.
This surcharge is applicable in scenarios where the cargo is destined for or transiting through regions identified as high-risk. The assessment of risk is based on a combination of geopolitical analyses and historical data regarding incidents in the area. The amount charged as an ERCS is generally calculated as a percentage of the freight cost, although fixed fees might be applied depending on specific circumstances.
It is important to distinguish the ERCS from other similar charges, such as the War Risk Surcharge, which specifically addresses the risks related to war or conflict zones. The ERCS, however, covers a broader range of potential hazards.
In practice, shippers and freight forwarders should remain vigilant regarding the designation of high-risk areas by the shipping line and understand how these designations might change over time. Additionally, it is crucial to communicate effectively with the shipping line to obtain accurate information on the applicable surcharge rates for specific routes and cargo types, ensuring that these costs are transparently accounted for in the overall shipping budget.
Frequently Asked Questions
The Extra Risk Coverage Surcharge (CMA-ERCS) is a fee imposed by the shipping line, CMA CGM, to cover additional risks when transporting cargo through high-risk areas. These risks could include piracy, political instability, or natural disasters. The surcharge helps mitigate financial impacts on shipping routes that are vulnerable to these threats.
The CMA-ERCS fee is charged by shipping carriers, specifically CMA CGM, and is paid by the shipper. This surcharge is typically collected from the freight forwarder or directly from the shipper to account for the extra risks associated with certain shipments.
The CMA-ERCS fee is calculated on a per shipment basis. The exact amount can vary depending on the level of risk associated with the shipping route or the nature of the cargo. Shippers should consult with their carrier for specific rates and calculations.
Avoiding the CMA-ERCS charge may be challenging if shipping through high-risk areas. However, shippers can reduce costs by choosing alternative routes or scheduling shipments during periods of lower risk. The surcharge is applied when transporting cargo through areas prone to piracy, political instability, or natural disasters.