Deadlock in dispute over terminal fees

Deadlock in dispute over terminal fees

Exporters fail to agree with shipping lines

A planned rise in terminal handling charges by foreign shipping lines at Thailand's ports remains far from settled after a meeting yesterday failed to reach a conclusion.

Authorities will discuss the issue at the Trade Competition Board’s meeting next month, said Santichai Santawanpas, deputy director-general of the Internal Trade Department.

He was speaking after a meeting between his department, the Port Authority of Thailand, foreign shipping lines, sea freight forwarders and the Thai National Shippers’ Council (TNSC).

The meeting was held after Thai shippers and exporters called on the department to put the brakes on a planned rise in charges at ports.

TNSC president Nopporn Thepsittha said his group's 2,300 exporter members completely disagreed with the increase.

The shipping lines should come up with good reasons for the hike, he said, adding that operating costs should be declining in line with the recent plunge in oil prices.

Late last year, foreign shipping lines said they would raise charges from Jan 1, but they postponed the increases until March 1 after complaints by exporters and the intervention of authorities.

The new charge for a 20-foot container will be 4,400 baht, up by 69.2%, while a 40-foot container will be charged 6,800 baht, up 74.4%.

Other fees for cashing documents, container closures and container lifting are also set to increase.

The new rates will be applied at first by seven Asia-based foreign shipping lines — Evergreen Line, Yang Ming Marine Transport Corporation, Hanjin Shipping, Wan Hai Lines, China Shipping Container Lines, Orient Overseas Container Line and SITC Hong Kong.

The new rates would add an estimated 9.92 billion baht a year to Thai exporters' costs.

Mr Santichai said shippers at the meeting said increases to 2,820 baht for a 20-foot container and 4,449 baht for a 40-foot container would be acceptable.

But shipping lines’ representatives remained at odds at the shippers’ proposal and asked for consultations with their headquarters, he said.

The department will set up a panel to consider the charges and invite academics from the Thailand Development Research Institute to study appropriate rates, Mr Santichai added.

Do you like the content of this article?
COMMENT