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The
Asian Shippers Council - which had its 5th
Annual Sessions and AGM in Sri Lanka last week -
said shipping lines are colluding to slap
additional charges on Asian exports, a matter it
vows to take before the Global Shippers’ Forum
to be held in London later this year. John Lu,
Chairman of the Asian Shippers’ Council, said
Asia’s exports would continue to be at a
disadvantage unless the countries in the region
introduced reforms to maritime regulations.
"These regulations exist in the US and EU but
not in Asia and as a result Asian shippers are
having to pay new and higher surcharges
introduced by shipping cartels and this too, on
the back of the global financial crisis which is
hurting the regions exports," Lu told
journalists in Colombo at the conclusion of the
Asian Shippers’ Council’s annual sessions.
Lu said Asia was the largest merchandise
exporter at over US$ One trillion, with 90
percent of it transported by sea, but due to
lack of regulatory reforms continued to lose
billions of dollars each year.
"In 2008, China paid over US$ 7 billion in
surcharges alone," Lu said.
Slump in global trade but shipping cartels
gain...
Asian shippers charged that shipping was the
only industry to gain when other industries were
losing due to the global financial crisis.
"Every industry is facing a hard time but the
shipping lines," Lu charged.
"Trade has contracted by about 10 percent and
exporters are already facing difficulties and
fighting for survival in this regard. There is
also empty space in cargo carrying vessels but
shipping lines are colluding to jack-up their
prices and introduce additional charges in the
process," he said.
Lu said the Asian Shippers’ Council believed
market forces should determine prices but
shippers are arbitrarily increasing rates
sighting the need to survive the recession.
While export volumes decline and shipping lines
encounter excess container space, the Asian
Shippers’ Council noted that shipping lines are
finding it reasonable to charge a peak season
surcharge and questioned the logic of market
driven prices.
"We see no reason why exporters in Asia should
pay more. Every industry is losing money these
days and we cannot accept the fact that shipping
lines are resorting to cartelisation," Lu said.
"Shipping lines are multinational companies who
are rich and powerful financially and
politically while the majority of exporters in
Asia are small and medium size establishments.
There is nothing much we can do but bring this
to the notice of our governments and lobby for
legislative reforms," he said.
"These reforms are crucial for a fairer,
reasonable and transparent environment for
international trade," Lu said.
The Asian Shippers’ Council is calling on
shipping lines to adopt all inclusive rates
rather than arbitrary terminal handling charges,
surcharges and other charges on top of freight
charges.
Source: The Island | 
