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Keith Wallis

The Hong Kong Shippers' Council is urging the Government to carry out an urgent probe into terminal handling charges after the Intra-Asia Discussion Agreement (IADA) became the third shipping body to increase charges this year.

  The council is particularly angry because it was the second increase in 12 months announced by IADA and it was imposed without any prior consultation.

  'We are asking the Government to look into the situation. We feel the charges are excessive, can't be justified and are something manipulated by the conference,' the council's executive director, Clement Yeung, said.

  He said the council had asked the Economic Services Branch and the Trade and Industry Department to take action.

  From April 1, the cost of handling a 20 ft dry-cargo container will rise to $1,500 and for a 40 ft container to $2,400. The cost of less-than-container-load cargoes will also increase.

  IADA will raise charges for reefer cargoes from June 1 to $1,950 for a 20 ft container and $3,140 for a 40 ft box.

  Mr Yeung said the revised charges were equivalent to an 8.7 per cent rise for a 20 ft container and 15.9 per cent for a 40 ft container.

  'We believe these increases are too much in too short a period. The last increases were only 10 months ago,' he said.

  IADA said the latest rises were necessary to maintain a high level of service for its customers and to offset exorbitant shore-side costs.

  Mr Yeung believed IADA had arbitrarily increased handling charges in an effort to make up the shortfall in declining freight rates.

  'If IADA feels freight rates have fallen then they should address the freight rates issue, not interfere in terminal handling charges,' he said.

  More than 50 shipping lines are covered by IADA, including Admiral Lines, Cosco Container Lines, Orient Overseas Container Line, Sea-Land Service, Interasia Lines, Nan Tai Line, P&O Nedlloyd Lines and Uniglory Marine Corp.

  Mr Yeung said the fact the agreement included all the major lines meant shippers had little choice and could not avoid the new charges.

  So far the Government has refused to intervene in the dispute because it feels it would be unwarranted interference in commercial agreements.

  But Mr Yeung said the issue was becoming more serious, especially because the various agreements created a cartel among shipping lines.

  The Transpacific Stabilisation Agreement, a group of shipping lines which carries 85 per cent of ship-borne cargo between Asia and the United States, is considering a rate increase from May.

  The Far Eastern Freight Conference and the Asia North America Eastbound Rate Agreement have both announced major increases in terminal handling charges.

  The Australia-New Zealand Freight Conference is also planning a further round of handling charge increases following an average 20 per cent rise in October.

OVER THE TOP Handling cost of a dry-cargo 20 ft container will increase to $1,500 Government inquiry sought 



Call for urgent probe on charges