Transpacific lines seek to clarify basis of THCs
The Transpacific Stabilization Agreement group of transpacific carriers said it has completed an internal review of its various terminal handling charges and will share its findings with shipper interests and government agencies in Asia and the U.S.
Shippers and government officials “have raised questions about the charges,” the carrier group said.
The agreement said it is contacting Asian shippers’ councils in the countries where terminal handling charges are assessed, to schedule presentations and subsequent discussions. Those meetings will include a more detailed explanation of how terminal handling charges — generally known as THCs — are constructed and the specific cost components they cover.
TSA expects in time to meet with all affected parties that have expressed an interest or participated in previous discussions on the terminal charges.
“We have listened to shippers’ requests for more transparency on how THCs are constructed,” said the agreement’s executive director Albert A. Pierce. “We feel we can now provide a full and accurate view into the make up of THCs for the eastbound transpacific trade lane, and hopefully put to rest much of the confusion surrounding this issue.”
TSA carriers are: American President Lines, Ltd.; Kawasaki Kisen Kaisha Ltd. (“K” Line); CMA CGM; Maersk Sealand; COSCO Container Lines Ltd.; Mitsui O.S.K. Lines Ltd.; Evergreen Marine Corp. (Taiwan) Ltd.; Nippon Yusen Kaisha (NYK Line); Hanjin Shipping Co. Ltd.; Orient Overseas Container Line Inc.; Hapag Lloyd Container Linie; P&O Nedlloyd Ltd./B.V.; Hyundai Merchant Marine Co. Ltd.; and Yangming Marine Transport Corp.
THCs are meant to represent a portion of terminal costs paid by carriers to terminal operators that are passed on to shippers. However, shippers have complained that there is no breakdown and explanation of the costs incurred, and that these charges are not negotiable with carriers.