Port dues in Rotterdam to stay at the same level in 2012
The port dues in Rotterdam next year will, by and large, stay the same as this year. This has been agreed by Deltalinqs (the Rotterdam business association for port and industrial companies), the Port of Rotterdam Authority and the VRC (Association of Rotterdam Shipbrokers and Agents). Inflation is always the starting point of the market consultation regarding rates. In 2012, this increase will be subject to a one-off compensation and furthermore, because of the uncertain economic tide, a discount of 3% will apply to most cargo, just like last year. What is also striking about the agreement is that transhipment of containers (sea-sea transhipment), and especially feeders, will be stimulated financially with a considerable discount and that clean inland shipping will also receive discounts.
Hans Smits, CEO of the Port Authority: ‘In addition to the Port Authority's considerable investments in the port area, we are continuing the discount in order to stimulate volumes. The crisis discount in 2010 and the recovery reduction in 2011 have worked well for Rotterdam. I expect that this discount will have the same effect in 2012.’
Wim van Sluis, Chairman of Deltalinqs: ‘In addition to the rate freeze, it is important that we have agreed to closely monitor market developments. Should significant decline occur in one of the market segments during the year, we will come to the table again to discuss the rates. I foresee that Rotterdam will increase its market share with these rates.’
Piet Hoogerwaard, Chairman of the VRC: ‘The outcome shows that the Port Authority has an eye for the difficult situation in which different sectors find themselves. Rotterdam is responding to the current situation. That is a good sign for the shipping companies.’
Transhipment discount
The starting point of the market consultation is that the rates keep pace with inflation. This means that the rates will increase in 2012 by 1.3%. In 2012, this rate increase will be compensated by a one-off discount of 1.3% for all sectors. On top of this, the one-off discount of 3% that applied to all commodities in 2011 will be continued. For containers, this discount is expressed in optimising the rate structure by introducing a transhipment discount. This also replaces the existing arrangement in which there is a maximum of port dues per call for deep-sea container vessels. For the transfer of a transhipment container, the deep-sea shipping company receives a discount of €1 per TEU and the feeder shipping company a discount of €1.50 per TEU. This amounts to an average discount of 12% on the net port dues on transhipment containers for deep-sea, and 32% on the net port dues on transhipment containers for feeders. With this, the development of Rotterdam as a transit port for container cargo by sea from or to areas in Northwest Europe and the Baltic Sea area will be stimulated.
For other general cargo (2% of the total throughput) some specific agreements have been made. This has resulted in an optimised rate structure for other general cargo as well. For administrative reasons, this optimisation will not take effect until 1 July 2012.
In addition, the parties agreed that the Administration Charges, currently paid by vessel operators to the VRC, will be incorporated in the port dues by applying a rise of 0.35%. The Port Authority will transfer this income to Deltalinqs. This will reduce administrative inconvenience to companies. The VRC and Deltalinqs use these revenues for representing interests and for social objectives for seamen in the port.
For the first time, Deltalinqs, the VRC and the Port Authority have agreed to keep open the possibility that rates are adjusted during the year. This could occur if there is an issue of serious decrease in one of the sectors (liquid bulk, dry bulk, containers, break bulk).
Inland port dues
As far as port dues for inland shipping are concerned, it has been agreed that clean vessels will receive a discount and the most polluting vessels will pay more. Inland vessels that do not comply with the CCNR2 emission requirements will pay 10% extra. Vessels complying with the CCNR2 requirements and that avail over a Green Award certificate will receive a 15% discount. Vessels which, in relation to CCNR2, emit at least 60% fewer fine particles and nitrogen will receive a 30% discount on port dues. This reduction of 30% is mainly intended as a signal to the sector that investing in sustainability is attractive.
Market consultation
The rate adjustment was agreed following intensive discussion with the market parties, coordinated by Deltalinqs, and applies to the sea ports of Rotterdam, Schiedam, Vlaardingen, Maassluis, Dordrecht and Moerdijk. The Port Authority and Deltalinqs have a covenant regarding the way in which the level of the sea port dues is determined annually. Through structured market consultation, the sector is satisfying government wishes for self-regulation of rates.
Port dues
Port dues are one of the Port Authority's income items and are charged to the shipping companies that visit Rotterdam. In 2010, the Port Authority received €275 million in sea port dues and €13 million in inland port dues. At €250 million, the other large source of income for the Port Authority is yields from contracts (letting and ground rent of sites).
Hans Smits, CEO of the Port Authority: ‘In addition to the Port Authority's considerable investments in the port area, we are continuing the discount in order to stimulate volumes. The crisis discount in 2010 and the recovery reduction in 2011 have worked well for Rotterdam. I expect that this discount will have the same effect in 2012.’
Wim van Sluis, Chairman of Deltalinqs: ‘In addition to the rate freeze, it is important that we have agreed to closely monitor market developments. Should significant decline occur in one of the market segments during the year, we will come to the table again to discuss the rates. I foresee that Rotterdam will increase its market share with these rates.’
Piet Hoogerwaard, Chairman of the VRC: ‘The outcome shows that the Port Authority has an eye for the difficult situation in which different sectors find themselves. Rotterdam is responding to the current situation. That is a good sign for the shipping companies.’
Transhipment discount
The starting point of the market consultation is that the rates keep pace with inflation. This means that the rates will increase in 2012 by 1.3%. In 2012, this rate increase will be compensated by a one-off discount of 1.3% for all sectors. On top of this, the one-off discount of 3% that applied to all commodities in 2011 will be continued. For containers, this discount is expressed in optimising the rate structure by introducing a transhipment discount. This also replaces the existing arrangement in which there is a maximum of port dues per call for deep-sea container vessels. For the transfer of a transhipment container, the deep-sea shipping company receives a discount of €1 per TEU and the feeder shipping company a discount of €1.50 per TEU. This amounts to an average discount of 12% on the net port dues on transhipment containers for deep-sea, and 32% on the net port dues on transhipment containers for feeders. With this, the development of Rotterdam as a transit port for container cargo by sea from or to areas in Northwest Europe and the Baltic Sea area will be stimulated.
For other general cargo (2% of the total throughput) some specific agreements have been made. This has resulted in an optimised rate structure for other general cargo as well. For administrative reasons, this optimisation will not take effect until 1 July 2012.
In addition, the parties agreed that the Administration Charges, currently paid by vessel operators to the VRC, will be incorporated in the port dues by applying a rise of 0.35%. The Port Authority will transfer this income to Deltalinqs. This will reduce administrative inconvenience to companies. The VRC and Deltalinqs use these revenues for representing interests and for social objectives for seamen in the port.
For the first time, Deltalinqs, the VRC and the Port Authority have agreed to keep open the possibility that rates are adjusted during the year. This could occur if there is an issue of serious decrease in one of the sectors (liquid bulk, dry bulk, containers, break bulk).
Inland port dues
As far as port dues for inland shipping are concerned, it has been agreed that clean vessels will receive a discount and the most polluting vessels will pay more. Inland vessels that do not comply with the CCNR2 emission requirements will pay 10% extra. Vessels complying with the CCNR2 requirements and that avail over a Green Award certificate will receive a 15% discount. Vessels which, in relation to CCNR2, emit at least 60% fewer fine particles and nitrogen will receive a 30% discount on port dues. This reduction of 30% is mainly intended as a signal to the sector that investing in sustainability is attractive.
Market consultation
The rate adjustment was agreed following intensive discussion with the market parties, coordinated by Deltalinqs, and applies to the sea ports of Rotterdam, Schiedam, Vlaardingen, Maassluis, Dordrecht and Moerdijk. The Port Authority and Deltalinqs have a covenant regarding the way in which the level of the sea port dues is determined annually. Through structured market consultation, the sector is satisfying government wishes for self-regulation of rates.
Port dues
Port dues are one of the Port Authority's income items and are charged to the shipping companies that visit Rotterdam. In 2010, the Port Authority received €275 million in sea port dues and €13 million in inland port dues. At €250 million, the other large source of income for the Port Authority is yields from contracts (letting and ground rent of sites).