Shippers slate container damage surcharge

A major shipping line on the SA trade has been condemned by the Cape’s shipper/forwarder fraternity for planning to introduce a contentious container damage surcharge from October 1. The line felt that such a surcharge was justified. “In the current global economy,” it said in a notice to customers, “the high cost and volume of container repairs have forced us to take remedial action against these rising costs. “In light of this, we will be introducing a ‘container damage surcharge’ for both import and export containers to be invoiced to the consignee and the shipper respectively, at the time of import container release and export bill release.” It has decided to levy the surcharge at the rate of US$30 per TEU for dry containers; US$60 for reefer (refrigerated) containers; and US$45 for special equipment. According to the line, the surcharge will cover any damages to its containers – up to a maximum of US$50 000 – while the container is under the client's responsibility. “Another iniquitous surcharge – purely a way of raising extra boodle,” said a prominent voice in the Cape seafreight brigade. His complaints were those generally agreed to by the entire international shippers’ community. That surcharges are purely add-on income, and lines should draw up an all-inclusive – and, for users, predictable – freight rate. Also that – in the case of surcharges such as this, or the equally contentious “dirty container surcharge” – a line would be hard put to come up with justifiable figures to support what shippers call “an arbitrary amount” for the fee per container. Shippers are equally adamant that it should not be levied on an “innocent paying for the guilty” basis, but that the allegedly guilty should be individually invoiced – with adequate proof of their guilt supplied. “It will provide additional ammo for our planned approach to government to outlaw surcharges – with the likely exception of baf (bunker adjustment factor) – and other ‘ancillaries’, in respect of liner vessels trading to-and-from SA,” said FTW’s shipping authority. The line, however, had nothing to say. It had not responded to the written complaint from our Cape Town source – which also went to a number of other prominent personalities in the SA shipping and associated industries. And, questioned by FTW on this surcharge issue, the line’s CEO was brief. “No comment,” he said.