Shippers in Hong Kong, Macau and Shenzhen said Thursday they are "elated" after their opposition to rising terminal handling charges on key intra- Asia routes spurred the central government to take action against the offending regional shipping lines that had attempted to more than double surcharges at southern mainland ports.
Four liner conference associations covering the intra-Asia, Middle East and Red Sea routes had announced in mid-April that effective May 15, terminal handling charges at southern Chinese ports would be doubled, in some cases quadrupled.
The proposed hikes would have seen handling charges at ports in Hong Kong, Shenzhen, Macau and Guangdong province soaring 197 percent for 20-foot container boxes, and up to 340 percent for 40-foot containers.
But China's Ministry of Communications ruled the increases invalid and ordering the shipping lines to cease collective rate-fixing activities for one year. Some are to be penalized for their actions.
Oriental Overseas (International) Ltd (0316), a shipping firm controlled by the family of former Hong Kong chief executive Tung Chee-hwa, is a member of the intra-Asia discussion agreement.
"Carriers are far too greedy in seeking to raise THC levels totally without justification," said Willy Lin, chairman of the Hong Kong Shippers' Council. "It is clearly a move to exploit shippers for the carriers' own benefit." The China Shippers' Association had lodged formal complaints with relevant government bodies.
"The increases would cause great burden to shippers in the Pearl River Delta, at a time when they are already under tremendous pressure ..." said Toland Lam, executive chairman of the Shenzhen Shippers' Association:
Four liner conference associations covering the intra-Asia, Middle East and Red Sea routes had announced in mid-April that effective May 15, terminal handling charges at southern Chinese ports would be doubled, in some cases quadrupled.
The proposed hikes would have seen handling charges at ports in Hong Kong, Shenzhen, Macau and Guangdong province soaring 197 percent for 20-foot container boxes, and up to 340 percent for 40-foot containers.
But China's Ministry of Communications ruled the increases invalid and ordering the shipping lines to cease collective rate-fixing activities for one year. Some are to be penalized for their actions.
Oriental Overseas (International) Ltd (0316), a shipping firm controlled by the family of former Hong Kong chief executive Tung Chee-hwa, is a member of the intra-Asia discussion agreement.
"Carriers are far too greedy in seeking to raise THC levels totally without justification," said Willy Lin, chairman of the Hong Kong Shippers' Council. "It is clearly a move to exploit shippers for the carriers' own benefit." The China Shippers' Association had lodged formal complaints with relevant government bodies.
"The increases would cause great burden to shippers in the Pearl River Delta, at a time when they are already under tremendous pressure ..." said Toland Lam, executive chairman of the Shenzhen Shippers' Association: