THE Intra-Asia Discussion Agreement (IADA) has decided to adopt a common PRC charge for loading and unloading cargo at ports in Guangdong and Fujian provinces.
IADA, a group of 40 container shipping lines which serve Hong Kong and other ports in intra-Asia trade, will charge US$130 per 20-foot equivalent unit (TEU) and $195 per 40-ft equivalent unit with effect from July 15.
IADA says this surcharge will apply to cargo moving to and from ports in the two provinces transported through a bill of lading, including cargo trans-shipped outside China.
Shippers from Hong Kong, increasingly moving to China since last year to avoid paying high terminal handling charges (THC) in the territory, are likely to be upset by this new development.
About 80 per cent of Hong Kong plastics manufacturers, faced with acute labour problems and rising property and rental costs, have moved most of their operations to China in recent years.
But the introduction of the PRC surcharge is expected to offset the savings shippers make on the THC, cutting back on their profits.
