Guangdong Ahippers' Association protests THC increase

The Guangdong Province Shippers' Association in China, has called on shippers, traders and forwarders to refuse to pay the 340 per cent increase in terminal handling charges (THC) imposed by international shipping organisations. The association also said its members retained the right to withdraw the previous THC payments.

At a meeting called "Seminar of Strategies on the THC", association president Cal Gaosheng said the main reason shipping companies gain the upper hand in such disputes is that shipping companies are individually large in size but collectively small so they can easily reach agreements. Conversely, shippers are collectively large but individually small, making joint action harder.

Quasi-conferences, including lntra-Asia Discussion Agreement (IADA), Informal South Asia Agreement (ISAA), Informal Rate Agreement (IRA), the Intra-Asia Discussion Agreement (IADA), Informal Rate Agreement (IRA) and Informal Red Sea Agreement (IRSA) are raising THCs for import and export cargo to and from Guangdong, Guangxi, Hainan and Yunnan by 340 per cent, according to the shippers.

The Chinese Ministry of Communications, the Chinese government authority in charge of the nation's transportation, said that agreements by ISAA and IRSA involving Chinese ports were in vain and their agreements on raising THC in South China starting from mid-May must be cancelled.

Source: Ships and Shipping