RP seeks abolition of terminal handling charges in Asean

The Philippines will seek the abolition of terminal handling charges (THC) in the ASEAN region during the annual forum of the Federation of ASEAN Shippers Councils (FASC) which will be held in the country from Nov. 6 to 8 this year.

The FASC is composed of Indonesia, Malaysia, Singapore, Thailand and the Philippines.

Associate members include Australia, Bangladesh, Hong Kong, Korea, Macau, Pakistan and Sri Lanka.

The Department of Trade and Industry (DTI), which is spearheading the abolition of terminal handling charges, said now is the right time for the abolition of terminal handling charges to level the playing field in the shipping industry.

The DTI said that instituting maritime reforms, not only in the country, but across the region as well would enhance supply chain management and make Philippine products more competitive.

The DTI hopes that the FASC conference will pave the way for the abolition of terminal handling charges and other unrelated and unreasonable charges levied against shippers.

Terminal handling charges are usually passed on by the shippers to the consumers and has, thus, become a burning issue among industry players.

Asian shippers group has complained that terminal handling charges have become non-transparent and unreasonable.

Accordingly, shipping lines are doubling their charges since cargo handling charges are already being paid by the shippers to port operators.

Sources said that rationalizing terminal handling charges and making them transparent would lead to more cost-effective transfer of goods from one country to the other.