HONG KONG GROUP URGES SHIPPERS TO ADOPT ALL-IN RATES

HONG KONG GROUP URGES SHIPPERS TO ADOPT ALL-IN RATES    The Hong Kong Shippers’ Council has asked its members to switch to contracts that    include terminal handling charges within the ocean freight rate.
   The call for all-in rates is part of the Asian council’s long-standing fight against separate terminal handling charges. The council said that terminal handling charges in Hong Kong “are still the highest in the world.”
   Following the decline of liner conferences, the Asian shipper’s council said that shippers should individually seek reductions in terminal handling charges as part of their dealings with carriers.
   “We urge shippers in (the) next round of freight rate negotiations on service contracts to incorporate the THC within the freight rates,” said Willy Lin, recently appointed chairman of the Hong Kong Shippers’ Council.
   “You should also convey this message to your buyers if you are selling on Free On Board terms,” he added.
   The vast majority of exports from Hong Kong are shipped F.O.B., in which case the cargo moves under a contract negotiated by the overseas buyer while the Hong Kong shipper pays the Hong Kong terminal handling charge.
   The Hong Kong terminal handling charge costs about HK$2,850 (US$367) per 40-foot container.