Trans-Pacific lines to discuss terminal handling charges

Updated 4:21 p.m. ET, Fri Mar 12, 2004

By Bill Mongelluzzo
The JOURNAL of COMMERCE ONLINE

LOS ANGELES -- Ocean carriers say they will demystify of the most contentious issues in the eastbound trans-Pacific trade -- how they calculate terminal handling charges at Asian ports (schedules).

Lines that call at Asian ports pay fees to terminal operators, including a terminal handling charge, or THC, for lifting containers on to vessels. The lines then pass on the charge to Asian exporters. Since the charge is folded into an overall tariff, shippers don't know the amount of the charge, which they say can be inflated by carriers.

The Transpacific Stabilization Agreement, which represents 14 of the largest carriers in the world's busiest trade lanes, today said it is setting up meetings with shipper interests, primarily in Asia, to discuss the results of a study the carriers conducted on THCs.

In a press release, the TSA stated that it has completed a review of terminal handling charges at various Asian ports and will share its findings with shipper interests and government agencies in Asia and the U.S. that have raised questions about the charges.

"We have listened to shippers' requests for more transparency on how THCs are constructed," said Albert A. Pierce, executive director of the TSA, based in San Francisco.

"After considerable research, we feel we can now provide a full and accurate view into the make-up of THCs for the eastbound trans-Pacific trade lane, and hopefully put to rest much of the confusion surrounding this issue," he stated.