ASC blasts intra-Asia lines for adding THCs without consulting shippers
The Asian Shippers' Council today said it views 'with deep concern' the decision of four intra-Asian rate agreements to increase terminal handling charges in South China.
'This reveals the total disregard of the Intra-Asia Discussion Agreement, Informal Rate Agreement, Informal Red Sea Agreement and Informal South Asia Agreement for China's position on this issue — that THCs are inherently a part of freight cost and cannot be charged separately,' the ASC said in a statement. 'The decision to raise the THC four times the current levels was made without prior consultation with shippers, which goes against the norms of good business practices to keep customers engaged over impending changes, and is required by Chinese regulations.'
ASC said it fully supports the China Shippers' Association's decision to raise the issue with China's Ministry of Communication and stands behind the Shenzhen Shippers' Association, Hong Kong Shippers' Council and Macau Shippers' Association in opposing the steep THC increase for containers in and out of South China.
'Failure to take action against the unjustified increases would result in a steep THC hike for South China shippers and a loss of their competitive position,' the ASC asserted. 'At ASC, we have always maintained that the THC is part of the freight rate, and any suggestion by the four rate agreements that collecting THC is an international practice is a blatant lie. As THC is charged over and above the freight rate, i.e., a double charge, it should be abolished. Instead there should be an all-in freight rate, subject to negotiation between the interested parties. We recognize that there may be instances when surcharges are justified, in the event of sharp increases in fuel for example. But any surcharge has to be temporary and transparent, based on costs. The THC fails on all three counts.'
ASC blasts intra-Asia lines for adding THCs without consulting shippers
