China exporters denounce bunker surcharge

China exporters denounce bunker surcharge China exporters denounce bunker surcharge
   The Hong Kong Shippers’ Council said Friday that export shippers in southern China are being forced to pay a $44-per-TEU (300 Chinese yuan) emergency bunker surcharge on all FOB shipments in the intra-Asia trade.
   HKSC Chairman Willy Lin said in a letter that shippers are refusing to pay the fee, but carriers are refusing to issue a bill of lading if the charge isn’t paid.
   “South China shippers have once again become the target for discriminatory charges by shipping lines on the China/intra-Asia trade,” Lin wrote. “The shipping lines are attempting to charge RMB300 ($44) per TEU and RMB600 ($88) per FEU for all FOB shipments in the intra-Asia trade. Consignees at destination who pay the freight should be responsible for all bunker surcharges.
   “The amount represents 16 percent of the current freight price, which is not only huge but also senseless since oil prices have dropped to $75 today, which negates the justification for any bunker surcharge whatsoever. The ’emergency’ bunker surcharge was started in 2008 when bunker prices reached $150 a barrel.”
   Lin said the refusal to pay the surcharge has been led by South China shippers, including the powerful Dongguan Foreign Trade Enterprise.
   “However, the shipping lines are using strong-arm tactics by refusing to issue a bill of lading if the charge is not paid,” Lin wrote. “The Beijing-based China Shipper's Association said that it would file a complaint with the Ministry of Communication, PRC.”
   China passed a regulation in 2007 stating that liner carriers need to consult with shippers groups before adjusting surcharges.
   Lin did not specify which lines were assessing the surcharges.