‘Still below cost recovery’ Alan Peat MEMBER LINES of the Japan and Hong Kong SA Shipping Conference (Jahoksascon) will increase the turn-in fee for empty containers from September 15. The fees for a 20-foot (6-metre) box will increase from R650 to R1 050 and for a 40-ft (12-m) from R1 300 to R2 100. “The increases are due to the rising costs of disposing of empties in Johannesburg and Pretoria,” a spokesman told FTW. “The turn-in fee is a contribution to the cost of empty evacuation.” And, FTW was told by one line executive: “Even at these quantums, the carriers are still below cost recovery.” This, he added, because the Spoornet tariff for an empty from Gauteng to the coast was, for example, R1 263 for a 20-ft and R2 481 for a 40-ft. “That means the lines are still subsidising the customers on empty turn-ins on the Reef,” he said. While nothing official has been made public, reliable sources reveal that, in all probability, the other conferences will follow. Whether at the same level is not yet clear. Although, added one shipping line source, the rates in the US-SA and the Europe-SA conferences are currently at the same low level as those of the Far East. The motivation, he added, is that “it’s a market price”, although it’s still not likely to be fully covered by any new fee. The problem, he also confirmed, is a big build-up of empty containers on the Reef, with an urgent need to return them to Durban for on-movement.
