Higher fees at ports irk Thai shippers

Higher fees at ports irk Thai shippers

Thai exports are headed for further choppy waters with a planned rise in the terminal handling charge (THC) at the country's ports.

Effective Jan 1, the new THC for a 20-foot container will be 4,400 baht, up 69%. For a 40-foot container, the cost will be 6,800 baht, up 74%.

The new rate will be applied at first by seven overseas shipping lines, all based in Asia: Evergreen Line, Yang Ming Line, Wan Hai Lines, China Shipping, Hanjin Shipping, OOCL and SITC.

"We expect other overseas lines from the United States and Europe to also increase their fees," said Nopporn Thepsittha, president of the Thai National Shippers' Council (TNSC).

He said the higher cost might make it difficult for Thailand's exports to meet the TNSC's growth projection of 4% next year, as it would trim the competitiveness of Thai shippers and especially smaller exporters with less bargaining power.

The TNSC has urged Thai officials to seek explanations from overseas shipping lines for the rate adjustments, reasoning that operating costs should be declining in line with the recent plunge in oil prices.

According to Mr Nopporn, Thailand has laws that could prevent businesses from taking excessive profits.

"Any fee increase should be fair and justified, and the lines should consult with Thai shippers in advance," he said at a press briefing yesterday. 

TNSC executives also suggested the Internal Trade Department study the structure of international shipping costs and THC rates to let all parties know where the costs come from.

In the long run, the department could use trade and service regulations to control shipping costs incurred locally, they said.

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