Shippers affected by additional charges by shipping lines

Channa KASTURISINGHE

HARASSMENT: The Sri Lanka Shippers' Council last Tuesday stressed the need for a regulatory authority to check arbitrary practices by shipping lines, non vessel operators (NVOs) and freight forwarders which has affected the profitability of export and import activities.

The Council's Chairman Jayanath Perera said that shipping lines continue to harass shippers by charging unrealistic handling fees and surcharges.

"The lack of a authority to regulate this area of business has allowed shipping lines, NVOs and freight forwarders to exploit importers and exporters by trying to recover more revenue.

We have repeatedly brought this to the attention of various governments but nothing has come out of it," Perera said.

He said shipping lines now impose additional charges such as documentation fees, carrier security charges.

"Some NVOs are now trying to recover additionally from import consignments.

This is a gross violation of the accepted norms of trade and consultative procedures adopted so far with the Council, and is an arbitrary and illegal way of collecting more revenue.

On the export side, these additional charges would increase the cost of our exports. It would ultimately make our products uncompetitive in the global market. Therefore, we urge the government to take effective measures to change this situation," Perera said.

He also said that some carriers continue to charge USD 40 per TEU congestion surcharge, even after the congestion in the Colombo port caused by the recent trade union action has long ceased.

"One shipping line is now proposing to increase bill of lading fees by USD 5 and charge USD 25 late bill of lading fee from shippers.

This sort of arbitrary practices are against the norms of fair trade," Perera said.

A former Chairman of the Shippers' Council Rohan Masakorala, said that shippers proposed to the government in 1997 to introduce a national shipping policy and a document was prepared to that effect.

"But this document is gathering dust today. There is an immediate need to implement the proposals in this document in order to address this kind of issues," he said.

He also said a regulatory authority in the lines of Federal Maritime Commission of United States should be set up in Sri Lanka to look into shipping activities.