Asean shippers push for abolition of terminal fees

The Federation of ASEAN Shippers’ Council (FASC) is giving private ocean liners a three-month deadline to act on the petition of shippers to do away with the terminal handling charges that is unduly jacking up shipping costs.

The issue of terminal handling was one of the highlights during the FASC 25th annual meeting held here from Nov. 6 to 8.

Pedro Vicente C. Mendoza of the Philippine Shippers Bureau said yesterday that FASC members are pushing for the incorporation of terminal handling charges with freight charges to avoid double charging.

"The FASC members are currently discussing separately their petition with ocean liners in their respective countries," Mendoza said.

However, Mendoza said, the FASC is setting a three-month deadline for the ocean liners to act on their petition.

"Otherwise, the FASC would elevate their case to the Association of Southeast Asian Nations (ASEAN) and the Asia-Pacific Economic Cooperation (APEC) to force the ocean liners to drop the terminal handling charges," Mendoza said.

He said terminal handling charges were imposed only in the mid 1990’s, on top of the regular freight charges and port fees.

Terminal handling charges include 26 components such as special services, shipping and cargo-based costs.

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.

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

According to the DTI, instituting maritime reforms, not only in the country, but all across the ASEAN region as well would enhance supply chain management and make Philippine products more competitive.