HK shippers blast `emergency` intra-Asia bunker surcharges

THE Hong Kong Shippers` Council has slammed a move by shipping lines to force export shippers to pay nearly US$45 per TEU as an "emergency" bunker surcharges (EBS) in the intra-Asia trade.
The surcharge represents 16 per cent of the current average freight rate despite a significant decline in oil prices, the council said.
"I particularly resent the requirement that this EBS is to be collected for all export shipments from China at ports of origin, regardless of whether the cargo has been `pre-paid at origin` or `collected at destination,`" said council chairman Willy Lin in a note posted on the Hong Kong Trade Development Council website.
"Everybody realises that fuel is consumed during the actual sea journey and therefore any surcharges associated with fuel can only be part of sea freight and naturally, to be paid by the party that pays the freight," he said.
"Shipping lines` absurd requirement that EBS must be paid by shippers at origin has disrupted not only normal shipping practices, but international trading practices as well. Shipping lines should realise that under FOB terms, all freight charges [including all fuel-related surcharges] are to be paid by importers at destination."
According to Mr Lin, shippers in South China are refusing to pay the surcharge, claiming carriers are only trying to collect revenue to offset losses in 2009.
He added that the Beijing-based China Shipper`s Association plans to file a complaint with China`s Ministry of Communications, which oversees liner affairs, concerning the surcharge.