‘Dismantling of conferences likely to bring more levies’
With dismantling of conference system of shipping lines shortly on trades to and from Europe, a side effect of this could see Asia-based shippers cop a slew of additional surcharges.
By Agencies |
With dismantling of the more than a century old conference system of shipping lines shortly on trades to and from Europe, a side effect of this could see Asia-based shippers cop a slew of additional surcharges, according to reports on key concerns affecting shippers in Asia.
Even though the expected outcome from October onwards is an environment where shipping services are negotiated solely by the buyer and seller and not discussed among competitors, many think that additional surcharges could become a real possibility.
The aim of the European Commission is supposedly to dismantle price fixing cartels and increase competition, a
mission that has been long cheered on by the European Shippers��� Council and other shipper bodies around the world.
According to Hong Kong Shippers��� Council executive director, Sunny Ho, the difficulty lies in the fact that there are at least three parties involved in international cargo transportation ��� the carrier, the shipper and the consignee.
Carriers currently charge both the shipper and the consignee, he said. However, the Asian shipper is not included in the negotiation; they are merely told by the consignee in Europe who to ship with after the price has been settled on the shipment.
negotiation. The negotiation is between the European consignee and the carrier. The Asian shipper has been left out of the negotiation,��� he pointed out.
Mr Ho fears that while the European buyers will try to negotiate for a better freight rate, which is paid for by them, the Asian shipper will be hit with higher terminal handling charges to compensate the carrier for the lower freight rate negotiated in Europe.
Even though the expected outcome from October onwards is an environment where shipping services are negotiated solely by the buyer and seller and not discussed among competitors, many think that additional surcharges could become a real possibility.
The aim of the European Commission is supposedly to dismantle price fixing cartels and increase competition, a
mission that has been long cheered on by the European Shippers��� Council and other shipper bodies around the world.
According to Hong Kong Shippers��� Council executive director, Sunny Ho, the difficulty lies in the fact that there are at least three parties involved in international cargo transportation ��� the carrier, the shipper and the consignee.
Carriers currently charge both the shipper and the consignee, he said. However, the Asian shipper is not included in the negotiation; they are merely told by the consignee in Europe who to ship with after the price has been settled on the shipment.
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���Now the carrier will have all of these origin THCs, documentation charges, in which are not included in the negotiation. The negotiation is between the European consignee and the carrier. The Asian shipper has been left out of the negotiation,��� he pointed out.
Mr Ho fears that while the European buyers will try to negotiate for a better freight rate, which is paid for by them, the Asian shipper will be hit with higher terminal handling charges to compensate the carrier for the lower freight rate negotiated in Europe.
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