The Hong Kong Shippers Council (HKSC) has reacted angrily to plans by members of the Transpacific Stabilisation Agreement (TSA) to impose a US$300 peak surcharge from August 17. HKSC executive director Clement Yeung Wai-shing said the council would make representations to the Government in an attempt to get the TSA to justify such a large increase. 'The last time we raised the issue, the Government indicated to the TSA that it would like to see more transparency and that, in the Government's view, shipping lines should discuss the increases with us,' Mr Yeung said. 'But not only are we not consulted, but this is the first we hear of it.' He added that it was the first time in many years that the TSA had introduced a peak-season surcharge, and followed close behind a $300 rate increase in May, increases in administration fees and Panama and Suez canals surcharges. 'They are hitting us from every angle,' Mr Yeung said. With exports from Hong Kong to the United States increasing this year by 7.8 per cent by value, Mr Yeung does not feel such a large increase can be justified. 'The TSA has not given us any figures to substantiate its claim,' he said. Ostensibly, the surcharge is imposed to cover costs of repositioning empty containers. 'We don't rule out that there is some shortage. But the way it is implemented, particularly in the Hong Kong context, is that the TSA sits down and says 'pay me $300', but they don't produce any figures to justify the increase,' Mr Yeung said. The HKSC also is angry that Japan is exempt from the surcharge, but Hong Kong is included. The TSA's response has been that Japan belonged to one pool and Hong Kong another, but Mr Yeung said: 'We really don't believe this is the reason for penalising Hong Kong. 'We believe Hong Kong should be looked at on its own merits and if Japan is exempted then so should Hong Kong.' The TSA has confirmed the peak-season surcharge would increase from $100 to $300 per feu (40 ft equivalent units) on shipments to the US from all Asian destination except Japan. The new charge will apply to member lines' tariff customers and service contracts signed on or after August 17. 'Customers with contracts signed from June 1 to August 16 will continue to pay the original $100 surcharge,' the TSA said. The TSA is a discussion and policy-setting group of 13 ocean and intermodel carriers, including Orient Overseas Container Line, Evergreen Marine, P&O Nedlloyd, Sea-Land Service, A.P. Moeller-Maersk Line and Hanjin Shipping. Explaining the increase, TSA managing director Albert Pierce said space and equipment availability already were extremely tight. 'Any options the carriers may be considering individually for redirecting cargo or redeploying assets are going to incur significant costs. Our primary concern right now is keeping cargo moving,' Mr Pierce said.
