Asian shippers claim they are forced to pay or face delays
Lines and their depot agents are forcing shippers to pay increasing fees for damage to containers in what amounts to a new stealth surcharge, claim shippers in the Far East.
A survey by the Hong Kong Shippers’ Council (HKSC), exclusively revealed to IFW, found that the size and frequency of fees charged for box damage had been increasing, and shippers were being charged for damage they were not liable for.
One Hong Kong-based shipper reported: “Shipping lines are asking for cleaning or chemical wash fees for almost all empty containers returned to their depots, even though our cargo is clean, packed in paper cartons and moved only by hand at our own warehouse.” Shippers claim lines and depots are making them pay for container damage, even when they are able to prove non-liability with an equipment interchange report (EIR). “Even though damage is clearly marked on the EIR upon gate-out at the terminal, some shipping lines insist on collection of repair costs on return of the empty at its depot,” said one shipper. “Otherwise, acceptance will be denied, or the tractor will have to wait for hours, causing delay and extra costs. This is simply blackmail”. Sunny Ho, Director of the HKSC, said three times as many complaints about unfair container damage charges had been received this year than in previous years. “The situation has definitely worsened in China and Hong Kong,” he told IFW.
“It could be because there are more damaged containers in circulation because of equipment shortages, or that lines have cut back on customer service, which makes it harder to resolve disputes. “But shippers shouldn’t be forced to repair them if they did not cause the damage, especially if they have an EIR. “Lines and their agents are taking advantage. They use delays and refusal to accept the empty to inconvenience shippers and force them to pay.”
John Lu, Chairman of the Asian Shippers’ Council, claimed rising container damage fees were just part of liner efforts to increase revenue by whatever means possible. We’ve already had emergency revenue charges, which are obviously illogical in a supposedly free market. Now we have these damage charges,” he told IFW.
“In Asia, lines can impose fees and surcharges for anything they want because shippers have no regulatory protection. This type of unfair charge on customers will continue until governments in Asia take action.”
However, Nicolette van der Jagt, Secretary General of the European Shipper’s Council, said overcharging by lines for equipment damage was not confined to Asia. “Some importers sometimes have no choice but to pay these charges when, actually, damage is down to wear and tear, or it could have happened months, possibly years, ago, and never flagged. “It feels to many like just another surcharge – but a high one.”
Source: Mike King, IFW News, 06 September 2010