U.K. SHIPPERS WANT ALL-IN RATES, NOT SECURITY ADD-ON
The Freight Transport Association, the industry association that represents British shippers, has called for shipping lines to seek an increase in existing container rates.
It said that incorporating additional security costs in freight rates to compensate carriers for increased costs as a consequence of new, stringent, security measures.is better than introducing new surcharges.
Responding to suggestions from the liner sector that a surcharge should be introduced, the Freight Transport Association said that it believes “that as increased security is going to be a long-term cost, raising rates for containers is the appropriate action to take.”
“Surcharges should only be used, if at all, in the short-term to offset temporary cost increases,” the British association added.
“U.K. exporters welcome the increased levels of security and safety for containers and as such realize that there will inevitably be cost implications for both sides,” said Neil Johnson, global logistics manager at the Freight Transport Association. “Increased security costs should be recouped via an increase in rates, rather than by a surcharge.”
In July, the U.S. National Industrial Transportation League criticized a Congress conference committee’s plan to charge shippers security fees of $15 per normal TEU and more for hazardous containers to contribute to maritime security costs.
The National Industrial Transportation League argued that such fees, while they may be necessary, should be shouldered by all players in transportation, and not just shippers.