The Hindu Business Line : Ship owners decline to cut handling charges

THE Association of Shipping Interests in Calcutta (ASIC), the body of ship owners and shipping agents operating through Kolkata dock system and Haldia dock, has turned down the request of the Eastern India Shippers Association (EISA), the body of shippers, for a downward revision of the terminal handling charges (THCs).

With effect from January 1 ASIC reduced the THCs by Rs 200 per TEU for containers not handled in CPY (container parking yard) and by a meagre Rs 25 per TEU for containers handled in CPY. The shippers feel such a reduction is too small and much a larger reduction is warranted as there is scope for it.

The shippers complain that the benefit of the rationalisation in various charges, as announced by Kolkata Port Trust (KoPT) and Calcutta Dock Labour Board from time to time and the improvement in productivity, is not being passed on to the shippers by the shipping lines and their agents. It might be noted that KoPT had earlier constituted a committee on THCs, comprising representatives of the EISA, ASIC, KoPT and the customs, to decide what could be done to bring down the THCs. However, several meetings of the committee did not yield anything to satisfy the shippers.

The shipping lines point out that the major element of THC is the stevedoring cost, accounting for 70 per cent to 80 per cent of the total. Also, the outgo on account of watchmen, numbering 190, is substantial.

At the recent meeting of the THC committee, the Deputy Chairman of KoPT urged the ship owners to examine options as to how to reduce the THCs. Responding to it, a member of ASIC suggested appointment of a terminal operator with published tariff.

However, the shippers' representative felt that such an appointment would serve no purpose. There was also a demand for treating on-board handling charges as part of ocean freight but the ASIC flatly rejected it.

ASIC made it clear that the detailed break-ups of the elements of the THCs could not be given. However, like ocean freight and stevedoring rates, the THCs too could be negotiated bilaterally between the shippers and shipping lines or their agents.

At the request of KoPT, however, ASIC agreed to explore the possibility of reducing THC for containers taken hook point delivery where the concerned parties placed their own trailers.