Maersk, CMA-CGM to slash surcharges in China by up to 50 per cent to boost traffic
Insiders sceptical 50 per cent reduction in surcharges will lift traffic
Shipping giants including Maersk and CMA-CGM are slashing surcharges in China from this month by up to 50 per cent to boost traffic, but industry insiders doubt it will make any difference to dwindling trade.
The cuts follow the Ministry of Transport's decision last month to compel shipping lines to end arbitrary surcharges to give relief to Chinese importers and exporters, especially in the pre-Christmas peak season.
Surcharges, different from freight rates, are collected on land for various purposes such as customs clearance and documentation. They are usually steep, non-transparent, and often allegedly unnecessary.
According to the China Shipper's Association, shipping companies today impose more than 20 kinds of surcharges in the country.
So far, 11 international and domestic shipping companies have announced reductions in surcharges.
Maersk Line, the world's largest container shipping company, has cancelled its certificate fee (450 yuan per bill) and customs clearance fee (250 yuan per bill) as well as reduced all other surcharges, including electronic cargo release, which has been cut to 190 yuan per bill from 450 yuan per bill.
But freight forwarders are hardly excited.
