Tuesday, March 16, 2010

China Mainland shippers groups seek 'unreasonable' fees probe

Logistics and container industry groups in 10 mainland cities have filed a request to the Ministry of Transportation to investigate into international ocean carriers charges, according to a report of National Business Daily.

Groups from Shanghai, Shenzhen, Guangzhou, Xiamen, Dalian, Tianjin and Qingdao have joined to ask that "unreasonable" demands including: equipment management fees, container seal fees and document printing fees demands be probed.

Industry protesters claim ocean carriers collect fees during the operations of container transportation which amount to nearly CNY30 billion (US$4.4 billion) a year. In Shenzhen alone, the document printing fee totalled to CNY300 million in 2008 based on the port's annual throughput of 21 million TEU, said the report, also carried by Xinhua.

Shenzhen Container Trailer Association secretary general Xu Xiaoming said road carriers are the same as ocean carriers and it is unreasonable that they be charged fees for moving cargo to the terminal. Large ocean carriers like Maersk should not bully road carriers into paying such fees, they said.

A lawyer who has been examined related cases said Maersk is trying to transfer the risk of offering low rate in order to remain competitive by charging such fees to cover its loss.

The lawyer cited in the story noted that Maersk is not charging such fees at overseas ports. Commenting on this, Xu Xiaoming said this was because there are still loopholes in the related laws in China.

Maersk China spokesman Yan Ci said the charges do not break the law and will continue to be applied.

A recent statement posted on Maersk's official website said the company is trying to reduce operating costs and hopes to "go through the hard times with its customers".

The carriers said the rate in 2009 was too low to cover costs and it needs to be adjusted. It apologized for the problems caused during the process of tackling this situation and promised to solve them.

Reference: Shipping Gazette

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