Shipping lines agree to cut THC<\/p>\n
Anissa S. Febrina, The Jakarta Post, Jakarta<\/p>\n
Foreign shipping lines have agreed to reduce the much-debated
\nterminal handling charges (THCs) but not to the amount earlier
\nset by the government.<\/p>\n
After an Intra Asia Discussion Agreement meeting in Singapore
\non Tuesday, the Overseas Shipping Representative Association
\n(OSRA) reported that it had agreed to set THCs at US$113 per 20-
\nfoot container and $175 per 40-foot container.<\/p>\n
A 10 percent tax would be added on top of the charges, as
\nrequired by the Ministry of Finance's regulation on value-added
\ntaxes.<\/p>\n
In a unilateral move in an attempt to regulate the industry,
\nthe government lowered on Nov. 1 the THC charges from US$150 to
\n$95 per 20-foot container and from $230 to $145 per 40-foot
\ncontainer.<\/p>\n
Shippers charge their customers THCs, which consist of
\ncontainer handling charges (CHCs) paid to ports and extra costs
\nduring container handling, at various rates. Common tariffs are
\nagreed at international conferences.<\/p>\n
\"Although the CHC has been reduced, there are several
\nincreases in storage as well as lift-off and lift-on costs,\" OSRA
\nchairman J. C. Tassoni told The Jakarta Post on Wednesday.<\/p>\n
Separately, Copenhagen-based shipping line Maersk Sealand said
\nit would start charging $125 for a 20-foot container and $190 for
\na 40-foot container beginning Nov. 14.<\/p>\n
It was previously among the nine foreign shipping lines to be
\nreported to the Corruption Eradication Commission by the
\ntransportation ministry for alleged graft because it had refused
\nto lower its charges to the ones set by the government.<\/p>\n
\"(The) THC is a commercial tariff we charge to recover the
\ncosts based on the government's charges and other factors such as
\nempty container handling,\" Maersk Indonesia president director
\nSoren P. Jensen said. \"It has nothing to do with corruption.\"<\/p>\n
He added that the mainland operators were invited to some of
\nthe discussions prior to the reduction, but not in the final
\ndiscussion that lead to the amount announced by the government.<\/p>\n
Jensen said his company could impose lower a tariff if the 10
\npercent VAT was scrapped.<\/p>\n
However, the transportation ministry's director general for
\nsea transportation, Hartjarta Hariyogi, said the government's
\ndecision on THCs was final.<\/p>\n
\"There will be no negotiations,\" he said. \"Several China-based
\nshipping lines have agreed on the amount, one even offered to pay
\nlower than what had been decided. There is no reason for not
\nimplementing it because we have lowered the CHCs.\"<\/p>\n
Jensen said if the government could improve port
\ninfrastructure along with access to and from the ports, the extra
\ncosts charged on top of the CHCs could also be lowered.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shipping-lines-agree-to-cut-thc-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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