Portnet and lines finalise draft of service level agreements

Alan Peat THE KEENLY awaited service level agreements (SLAs) between the shipping lines and SA Port Operations (Sapo) should be signed, sealed and delivered in about a month's time, according to Dave Rennie, c.e. of Unicorn Shipping and executive chairman of the Container Liner Operators Forum (Clof). These SLAs are designed to allocate liability for port delays to the appropriate guilty party, and open the way for agreed compensation to be paid for these hold-ups. It's something which should prevent contentious port congestion surcharges being heaped on shippers and importers and place any claims firmly on the shoulders of the guilty party. They are very much two-way agreements and the lines - which also bear their own share of guilt for berthing jam-ups - will also be targeted when they don't comply with the agreed conditions. In joint negotiations, Sapo and Clof have drafted the basic service level agreement in two parts, Rennie told FTW. "The first is the generic document containing the terms," he said. "The standard trading conditions, if you like. "Second are the service levels and responsibilities for each party." Basically, Rennie added, the port has to berth a ship within a given window. If they don't - and the lines meet their responsibilities - then Portnet must pay. However, at the same time, the lines must achieve what is required of them.