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Terminal Handling Charge Shippers Perspective 2005

Terminal Handling Charge Shippers Perspective 2005

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Published by Ravindra Kumar Kaul
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Published by: Ravindra Kumar Kaul on Jun 07, 2013
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03/29/2015

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Terminal Handling Charge:
Shippers’ Perspective
 
By Philippine Shippers’ Bureau 
Philippine 
Shippers’ 
Bureau 
 
 
2
Background
 
The terminal handling charge (THC) has been an issuefor many years now. It was unilaterally imposed byinternational shipping lines on both export and importcontainerized cargoes purportedly to recover costsincurred at container terminals.
THC was first introduced in 1990 as a separate chargefrom ocean freight for all container shipments for HongKong-Europe trade by a group of carriers known as Far Eastern Freight Conference (FEFC). This was followed by another group of shipping lines, i.e. Australian & NewZealand Eastern Shipping Conference (ANZESC) in thesame year.
 
3
Background
 
In late 1991, Asia North America Eastbound Agreement(ANERA) also imposed THC for all container shipments.Other rate and discussion agreements adopted the THCand extended its imposition across Asia.
ANERA (which was now replaced by TranspacificStabilization Agreement serving US-Asia trade) andIntra-Asia Discussion Agreement (IADA), serving intra-Asia trade, continue to charge the THC. Since then, THChas become a conventional charge of shipping lines andhas steadily increased over the years.
Philippine
Shippers’
Bureau (PSB) had sought a dialogue between shippers and liners (IADA, TSA, and FEFC) inManila early last year but has never come up with adefinite agreement.

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