Shippers accuse lines of 'strong arm' tactics

Shipping lines and South China shippers are locked in a bitter standoff over the imposition of an “emergency bunker charge” of US$43 per TEU and $86 per FEU for all FOB shipments in the intra-Asia trade.

Shippers are refusing to pay the surcharge and the carriers are refusing to issue bills of lading until the charge is paid.

“Consignees at destination who pay the freight should be responsible for all bunker surcharges. The amount represents 16 percent of the current freight price, which is not only huge but also senseless since oil prices have dropped to $75 today,” said Hong Kong Shippers’ Council chairman Willy Lin.

Lin said the “emergency” bunker surcharge was started in 2008 when bunker prices reached $150 a barrel.

“South China shippers, including the powerful Dongguan Foreign Trade Enterprise, are refusing to pay. However, the shipping lines are using strong-arm tactics by refusing to issue a Bill of Lading if the charge is not paid,” he said.

The Beijing-based China Shipper’s Association said it would file a complaint with the Ministry of Communication.

(source: Cargo News Asia)