Terminal Handling Charges News

New pre-arrival clearance protocols and reduced terminal handling charges for containers in transit, mean that Jordan’s deep-water Aqaba Container Terminal (ACT), located on the Red Sea, is now a realistic alternative maritime gateway for Iraq-bound cargo. Containers imported into Iraq will no longer have to be trans-loaded onto new trucks as they cross the Jordanian/Iraqi border. “The Aqaba Container Terminal has been working hard over the years to develop a competitive gateway to Iraq," says ACT Managing Director Steven Yoogalingam. Ideally located, the ACT is 550km - or 36 hours by road - from the Iraqi border town of Traibil and 48 hours from Baghdad. This development comes as the volume of Iraqi imports experience rapid growth - 86% last year alone.

Eleven container liner transportation companies have promised to cut or standardize the Terminal Handling Charges (THC) in order to lower nearly 3.5 billion yuan burden of export enterprises each year, according to National Development and Reform Commission (NDRC). According to a report in Shanghai Daily, the shipping companies include  China COSCO Shipping Cooperation, Maersk line, Mediterranean shipping, Hapag-Lloyd AG, Evergreen Marine, Hyundai Merchant Marine, Nippon Yusen Kaisha, Mitsui OSK Lines, Sinotrans Shipping. These companies have written to the NDRC and Ministry of Transport promising in standardize THC by adjusting cost standard. Chinese trading companies "reported" the excessively high and non-transparent surcharges to the NDRC.

The recent rally in Asia to Europe spot market rates has improved carriers’ chances of securing higher 2017 contract rates. How much extra will shippers have to fork out? It has been another typically volatile year as far as the spot freight rate market (i.e. rates with a validity of up to 30 days) is concerned with the weekly ups and downs once again being most obvious in the high-volume westbound Asia to Europe trade. Table 1 shows that in many respects 2016 has thus far played out very much like 2015 with very little difference in regards to the average weekly rate, standard deviation or highs and lows. However, this year does differ in one key aspect: timing.

CMA CGM informed its customers that the collection of Terminal Handling Charges (THC), which was introduced in Ghana on July 20th, 2016, has been temporarily suspended, effective October 4th, 2016. CMA CGM will communicate on the resumption in due course. Earlier, the transport ministry has suspended the implementation of the THC being proposed by the various shipping lines in Ghana. It, however, stated that shipping companies are at liberty to increase their freight rates in accordance with increased operational costs. Various groups in the industry, including the Ghana Shippers Authority, the Ghana Ports and Harbors Authority, Importers and Exporters Association of Ghana, among others, have kicked against the THC, saying it would further increase the cost of doing business.

Drewry’s Global Freight Rate Index, a weighted average of spot container freight rates across all major routes except intra-Asia, swung back in July by 13% to reach $1,403 per 40ft box. The global spot rate index had dropped to an all-time low of $1,113 per 40ft container in April. Drewry is in a unique position to track these trends through its Container Freight Rate Insight online platform, via which a constant panel of over 30 forwarders and NVOCCs report rates on a continuous basis. Among the North-South trades, dismally low rates on the Asia-West Africa and Asia-South Africa routes are registering signs of reversal, with the start of the peak season. Rates from Shanghai to Lagos increased by 11% between May and July.

The Vietnamese government is considering implementing a new decree that would require shipping companies to publicize their freight tariffs (including surcharges and commissions paid to brokers). Several foreign logistics companies have expressed concern about the proposal. According to the government, the decree is intended as a tool to protect importers and exporters. A recent government audit revealed that many shipping lines operating in Vietnam impose an average of 70 kinds of surcharges, many of which are “unclear” and/or unreasonably high. Key areas of concern were in terminal handling charges, container clearance, and maintenance. Vietnam is currently accepting opinions from the public about the possible implementation of the new decree.

BMT Asia Pacific (BMT)  has launched two comprehensive tools for assessing port competition and managing commercial risk. The Port Choice Model and Port 360° evaluate the competitive advantage of a given port within its environment. Developed by BMT following years of academic research and professional consultancy assisting governments and stakeholders, the tools uniquely apply both quantitative and qualitative methodology and measure a spectrum of criteria, defined by leading economists and technical port experts.

BMT Asia Pacific (BMT) have launched Port Choice Model and Port 360° to evaluate the competitive advantage of a given port within its environment. BMT explain that they developed the tools following years of academic research and professional consultancy assisting governments and stakeholders. The tools uniquely apply both quantitative and qualitative methodology and measure a spectrum of criteria, defined by leading economists and technical port experts. With the growing complexity of the port sector, BMT say that they recognised the need to assess competition with greater, critical scrutiny.

Matson, Inc., a U.S. carrier in the Pacific, announced today that Matson Navigation Company, Inc. will raise its rates for the company's Hawaii service by $175 per westbound container and $85 per eastbound container, effective January 5, 2014. The increase will be filed with the Surface Transportation Board. In addition, Matson will raise its terminal handling charge by $50 per westbound container and $25 per eastbound container, also effective January 5, 2014. Matson estimates that the combined increase of both the rate adjustment and terminal handling charge will result in shipping costs rising by an average of 5.5%. Historically, Matson announced average percentage increases based solely on the rate increase, excluding terminal handling charges.

Matson has announced  that Matson Navigation Company, Inc. (Matson) will raise its rates for the company's Hawaii service by $175 per westbound container and $85 per eastbound container, effective January 1, 2013. The increase will be filed with the Surface Transportation Board. In addition, Matson will raise its terminal handling charge by $50 per westbound container and $25 per eastbound container, also effective January 1, 2013. Matson estimates that the combined increase of…

Drewry Shipping Consultants and The Cleartrade Exchange announced that the World Container Index (WCI), the first Europe-based assessment of container freight rates and index production, is scheduled for launch in September 2011. The index will be designed to provide a new and important facility for the global market to hedge their freight rate risk and see major improvements in forward price discovery through the container derivatives market. Significantly, the new index will be the first of its kind to report weekly freight rates on backhaul as well as headhaul routes and will provide increased efficiencies in hedging strategies for freight users dealing in bulk, commoditised and recovered cargoes.