The Hindu Business Line : Lufthansa Cargo levies new import handling charges

Chennai, May 20 Lufthansa Cargo has implemented new handling charges from May 1 on cargo imported into India. However, the trade is against this and wants the carrier to withdraw the charges immediately.

The new charge will enhance the entire service chain immediately after touch down of aircraft for import handling services.

But the trade feels it is an “unfair trade practice” adopted by the carrier.

Major player

Since Lufthansa Cargo is a major player in the air cargo market with nearly 80 per cent market share, the carrier is taking advantage of this position to generate undue profits, according to the Federation of Indian Export Organisations.

As per the World Air Cargo Forecast-2006-2007, of the total 1.4 million tonnes of international cargo that flew in and out of the Indian sub-continent which include Pakistan, Bangladesh and Sri Lanka, India moved 8.82 lakh tonnes.

Lufthansa Cargo in a circular to its clients said the levy was to realign its services to the new improved level, and charged along with the delivery order fee.

Air Cargo Agents Association of India

The Air Cargo Agents Association of India said that the levy was an “unjustified additional revenue on your (Lufthansa Cargo) part.

In reality, you are required to give consignees all air cargo shipments by you ready for delivery at destination without recovering any further charges. You have already collected freight charges for transporting the shipment from origin to destination.”

SICCI

According to the Southern India Chamber of Commerce and Industry, Lufthansa Cargo being a dominant player in the air cargo export and import business to and from the country has seized upon this dominance to introduce an ‘unjustified and illegal’ additional levy.

Carriage of cargo under ‘Contract of Affreightment’ casts a responsibility on the carrier accepting the freight, at a foreign location to place the same at the disposal of the consignee on arrival in India.

Freight practice

The freight charges for carriage encompass this responsibility.

This is the practice adopted by all airlines, including Lufthansa Cargo carrying import cargo for Indian trade.

The levy seeks to subvert this contractual obligation and impose an additional charge on Indian importers, SICCI said.

With a transport volume of 1.81 million tonnes of freight and mail, Lufthansa Cargo ranks among the world’s biggest cargo carriers.

It operates a fleet of 19 of its own MD-11F aircraft and has several other freighters on charter to cover around 300 destinations, according to the company’s Web site.