Freight forwarders lift boycott of Maersk after parties resume talks

Freight forwarders in Shanghai have called off their boycott of Maersk Sealand and their dispute over freight finders' commissions appears to have been settled amicably.

The Shanghai International Freight Forwarders Association (Siffa) on April 7 began the boycott after Maersk, the world's largest container shipping line, said it would no longer pay forwarders a finder's fee of up to 4.25 per cent of the freight rate. Rates typically range from US$800 to US$2,000 per 20 ft box depending on where the goods are shipped to.

Siffa office director Zheng Zhong said the organisation ended the boycott nine days later, when Maersk returned to the negotiating table.

Siffa had asked for a minimum of 2.5 per cent. But with carriers increasingly able to sell their trade-transport services direct to mainland exporters under the new dictates of China's accession to the World Trade Organisation (WTO), it is believed most forwarders have settled for less.

'We started the boycott to bring the shipping lines to the discussion table, and we have now reached a tentative agreement with Maersk Sealand,' Mr Zheng said.

Both sides declined to say where the new commission level had been set. But it is believed Maersk will offer variable commissions based on volumes booked by individual forwarders. Discussion on the rate will therefore remain fluid.