Shippers from the Association of Southeast Asian Nations (ASEAN) said Tuesday they will work with Chinese shippers to challenge the imposition of terminal handling charges (THC) by international liners.

The Federation of ASEAN Shippers' Councils said in a joint statement that shippers' councils and associations in the region strongly supported the China Shippers' Association on this issue.

The federation issued the statement yesterday at the conclusion of its 26th annual meeting in Beijing.

International liners unilaterally started collecting THC, apart from on freight in China since January 15 last year.

The China Shippers' Association, which strongly criticized the cartel's practice, has submitted the dispute to the Chinese Government.

Yuan Xueyou, president of the China Shippers's Association, said he expected the government will deliver a favourable ruling after a full investigation.

Yuan said the investigation will completed by the end of this month.

Yuan said Chinese shippers paid an additional 13.25 billion yuan (US$1.6 billion) for THC last year.

As THC is already paid for freight, it should not be paid again, Yuan said.

As a manufacturing powerhouse, the volume of containers handled by local ports increased rapidly month-on-month, according to Yuan.

From January to July this year, China's major ports handled 25.67 million TEUs (20-feet equivalent units), up 31.8 per cent year-on-year.

Yohn Lu, chairman of the federation, said all the delegates to the meeting are confident that shippers would succeed in forcing the liners to abolish THC by adopting a unified approach in dealing with liner cartels.

Lu expected the Chinese Government would ensure a fair and just solution to the THC issue.

Lu said they are optimistic the China Shippers' Association will prevail with the support of the federation.

"In return, a favourable ruling in China will help solve the issue in ASEAN countries," Lu said.

ASEAN shippers' associations have been fighting with international liners since they began the collection of THC in 1990.

"We will continue our fight until we succeed," Lu said.

Kerk Choo Ting, chairman of the Malaysian Shippers' Association, said delegates attending this annual meeting have agreed to set up a pricing panel.

"The panel will work out a price list charged by the liners and make it clear what is overlapping payment," he said.

China became an associate member of the federation in March this year and it is the first time that China has hosted the annual meeting.

(China Daily October 22, 2003)