Ocean Freight Surcharges

PSS Surcharge (Peak Season Surcharge)

PSS (Peak Season Surcharge): Additional charge during high-demand shipping periods. When it applies, typical range, and who pays under common Incoterms.

Code
PSS
Name
Peak Season Surcharge
Typical range
$200-$1,000+ per TEU during extreme peaks
Routes
Transpacific, Asia-Europe, Major import routes

Peak Season Surcharge (PSS) is a temporary surcharge imposed during periods of exceptionally high shipping demand. This typically occurs during the months leading up to major retail seasons when importers rush to stock inventory.

Traditional peak season periods: • August-October: Pre-holiday retail inventory buildup (Christmas, Black Friday) • January-February: Post-Chinese New Year rush • May-June: Summer goods and back-to-school shipments

PSS reflects the basic economics of supply and demand - when space is scarce and demand is high, carriers can command premium prices. Unlike GRI which may be rolled back, PSS is explicitly temporary and tied to seasonal demand patterns.

The surcharge can be significant during extreme peaks - during the 2020-2021 supply chain crisis, PSS on transpacific routes reached unprecedented levels as demand far outstripped available capacity.

PSS may be layered on top of GRI, meaning shippers can face both increases simultaneously during peak periods.

When PSS applies

During peak shipping seasons, typically August-November and post-Chinese New Year.

Who pays PSS under common Incoterms

  • FOB: buyer
  • CIF: seller
  • EXW: buyer
  • DAP: seller

How to minimize PSS

  • Ship earlier to avoid peak windows
  • Maintain year-round shipping relationships for priority space
  • Negotiate PSS caps in service contracts
  • Consider air freight for urgent peak-season shipments
  • Diversify sourcing to spread shipment timing

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Frequently asked questions

What is the PSS surcharge?

PSS stands for Peak Season Surcharge. Additional charge during high-demand shipping periods.

When does PSS apply?

During peak shipping seasons, typically August-November and post-Chinese New Year.

How much is PSS?

The typical range is $200-$1,000+ per TEU during extreme peaks. Confirm the current amount with your carrier or forwarder.