Asian shippers pleased with Indonesian terminal handling charge cut
The Asian Shippers’ Council Monday said it is happy shipping lines have lowered their terminal handling charge (THC) for cargo moving to and from ports in Indonesia.
Following pressure from the Indonesian government, port operators lowered their container handling charges (CHC) from $93 to $70 per 20-foot container, and capped the maximum THC that shipping lines can impose at 35 percent above the CHC.
The ASC estimated that with an annual total of 6 million TEUs throughput at ports in Indonesia, the reduction amounts to at least $350 billion a year.
“The THC should not have been implemented in the first place: That shippers should be charged an all-in rate to avoid double counting and confusion,” said the ASC. “We look forward to working with governments in Asia to bring this about, as this will have immeasurable value for the countries’ capacity to export,” the ASC said.