Guangdong Shippers Association is calling upon its members to
join forces to oppose the possible increase of terminal handling
charges (THC) in the future - by as much as 340 percent in some
cases - collectively proposed by four shipping associations.
The Intra-Asia Discussion Agreement (IADA), the Informal Rate
Agreement (IRA), the Informal Red Sea Agreement (IRSA) and the
Informal South Asia Agreement (ISAA) recently issued a joint
statement saying they will raise THC for cargo to and from South
China to recover rising shore costs.
The new charges proposed are US$141 per TEU (twenty-foot
equivalent unit) and $269 per FEU (forty-foot equivalent unit) for
dry freight and US$181 per TEU and US$344 per FEU for reefer cargo,
which will be applicable to all South Asia import and export cargo
to and from the provinces of Guangdong, Hainan and Yunnan, and the
Guangxi Zhuang Autonomous Region.
"The Ministry of Communications ruled the rate rise void late
last month, much to our happiness," said Cai Gaosheng, chairman of
Guangdong Shippers Association. "However, the ruling was based on
their improper filing procedure, which means they can modify the
procedure and raise the charges again very soon, which is very
worrying."
The new rates, had they been approved, would take effect from
today.
Cai said the provincial association has been collecting the
opinions of its members and is asking all shippers in Guangdong to
reject the rate rise and collect evidence for future litigations
and compensation. "Guangdong shippers should be united to protect
their interest."
He said the irrational THC rise will impose another huge burden
on the shippers in Guangdong and stunt the development of
Guangdong's foreign trade, which accounts for one-third of the
national total.
According to Toland Lam, executive chairman of Shenzhen Shippers
Association, Shenzhen shippers will have to pay an additional THC
of 3.15 billion yuan annually if the rate does go up, resulting in
a gain of $404 million for the shipping lines of the four
associations in 2007.
(China Daily May 15, 2007)
