| Lin |
The charge represents roughly 16 percent of the current average freight rate in the trade, the council argued, while oil prices are nearly half of what they were in 2008.
'I particularly resent the requirement that this EBS is to be collected for all export shipments from China at ports of origin, regardless of whether the cargo has been 'pre-paid at origin' or 'collected at destination,' ' HKSC Chairman Willy Lin wrote in a note posted to the Hong Kong Trade Development Council Web site.
'Everybody realizes that fuel is consumed during the actual sea journey and therefore any surcharges associated with fuel can only be part of sea freight and naturally, to be paid by the party that pays the freight. Shipping lines’ absurd requirement that EBS must be paid by shippers at origin has disrupted not only normal shipping practices, but international trading practices as well. Shipping lines should realize that under FOB terms, all freight charges (including all fuel-related surcharges) are to be paid by importers at destination.'
Lin said shippers in South China are refusing to pay the surcharge and said it is evidence that lines are trying to collect revenue this year to make up for steep operating losses in 2009.
The note did not specify which lines were attempting to impose the fee. Lin did say that the Beijing-based China Shipper’s Association plans to file a complaint with China's Ministry of Communications, which oversees liner affairs.
