Shippers and forwarders get vocal about 'unjustified' surcharges

Freight surcharges are getting out of hand. And it’s not only South African shippers who think so. A list of typical surcharges and local surcharges imposed on non-contracting parties in Africa, Asia and South America recently compiled by the Global Shippers’ Forum revealed a list of some 40 charges and fees payable. The list includes items such as pick up, scanner, war risk, off-dock and port cost surcharges. Then there are the transit, assurance and emergency terminal congestion surcharges, the freight tax, drop off, container cleaning and evaluation fees, and the list goes on. “It is fair to say that some of the items on the list compiled by the GSF – such as freight tax for instance – are imposed by governments and passed on by shipping lines,” industry stalwart Mike Walwyn told FTW. “Every charge on the list is charged by shipping lines. Not all of them by every line, of course, and some of them are specific to certain parts of the world, but they add up.” The GSF list comes in light of yet another surcharge to be introduced in January next year when new legislation in Europe and the United States comes into play, mandating carriers to use low sulphur fuel. “The list gives a clear indication of the quantity and range of surcharges applied by shipping lines across the world,” said Walwyn. “It is aimed at non-contracting parties and there are many such shippers. So these surcharges make a significant impact on the average shipper. And even when contracts are involved, they don’t always give relief from surcharges but are mainly there to set a preferential freight rate based on volume.” Fiata, the international trade association that represents the world’s freight forwarders and logistics service providers, has added its voice to that of the GSF and surcharge-weary container line customers. “It is time for the world’s container shipping lines to provide greater clarity on the ever-increasing variety of surcharges that they apply,” said the organisation’s Robert Keen. “In the past, we have seen administration fees, peak season surcharges or ISPS add-on surcharges. Of late, we have had examples of container cleaning fees and container sealing fees, without any evidence of the expense actually being incurred,” he said. Said Keen, who is also the director general of the British International Freight Association, “It is time for freight forwarders to stop accepting at face value opaque and unjustified surcharges.” INSERT It is time for freight forwarders to stop accepting at face value opaque and unjustified surcharges. – Robert Keen