China investigating shipping companies for ‘arbitrary charges’

Complaints against shipping companies involve telex charges, container seal fees and terminal handling charges, according to state news agency Xinhua.    China is investigating shipping companies for “arbitrary charges,” according to reports from state news agency Xinhua.
   “The State Council, China’s cabinet, said on Wednesday it had called upon several departments to investigate allegedly illegal charges and double charges on exports and imports,” Xinhua reported. It said the probe follows “complaints from foreign trade enterprises” and added that since 2014, a clean up of arbitrary charges has helped enterprises save 30 billion yuan.
   The National Development and Reform Commission (NDRC), has found that some shipping companies “have too many items on document charges and unreasonable telex release charges.”
   NDRC said some shippers have adjusted their charging practices, for example reducing telex release charges from around 500 yuan ($78) per order to around 200 yuan.
   Xinhua said arbitrary charges remain an outstanding issue, even though government administrative fees are fairly standardized with terminal handling charges in some ports having gone up to 1,200 yuan per container from last year’s 700 yuan, and seal fees climbing from 5 yuan per container to 75 yuan.
   The State Council has ordered seven departments including the NDRC, the Ministry of Transport, the Ministry of Commerce and the General Administration of Customs to carry out a full-scale investigation, Xinhua reported.