Port fee rises: global shippers taken to task

Port fee rises: global shippers taken to task

Officials and shipping line operators to meet

Authorities are scheduled to meet with foreign shipping lines on Monday to help put the brakes on a planned rise in the terminal handling charge (THC) at the country's ports.

The meeting comes after the Internal Trade Department met with the Thai National Shippers' Council (TNSC) and the Importers and Exporters Association, in which the latter two called on the department to implement the Price of Goods and Services Act to curb the THC hike.

Effective Jan 1, the new THC for a 20-foot container will be 4,400 baht, up 69.2%. For a 40-foot container, the cost will be 6,800 baht, up by 74.4%.

Other fees such as cashing documents, container closures and container liftings are also subject to increase.

Cashing document fees will increase to 1,200 baht a set from 800 baht, container closure fees up to 200 baht per container from 150 baht, and container lifting to 280 baht for a 20-foot container and 560 baht for a 40-foot container from no charge at present.

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

Another 20 international lines from the US and Europe are also preparing to raise their fees.

Santichai Santawanpas, deputy-director general of the Internal Trade Department, said without any action, Thai exporters, particularly small and medium-sized enterprises, would be hard hit, given their comparatively low competitiveness and bargaining power.

"If negotiations fail and there is clear evidence of foreign shipping lines profiteering and conducting unfair trade practices, we're eligible to use trade and service regulations to control shipping costs incurred locally," he said.

The new rate will add an estimated 9.92 billion baht a year to Thai exporters' costs, Mr Santichai added.

TNSC president Nopporn Thepsittha earlier said the higher costs might make it difficult for Thai exports to meet his agency's growth projection of 4% next year, as it would trim the competitiveness of Thai shippers, particularly smaller exporters with less bargaining power.

The TNSC is urging Thai officials to seek an explanation from foreign shipping lines for the rate adjustments, reasoning that operating costs should be declining in line with the recent plunge in oil prices.

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