Ministry gets tough on shipping lines over THC

The Jakarta Post, Jakarta

The government plans to get tough on shipping lines' representatives who fail to present their permits as well as those who refuse to reduce terminal handling charges (THC) at ports, a minister says.

"According to our team's investigation results, there are 23 shipping owner representatives who do not have the proper (operation) permit and nine others who were caught red-handed charging shippers with the old THCs," Minister of Transportation Hatta Radjasa announced on Monday.

He said the 23 representatives failed to show his ministry's recommendation letters, which are required to start operating in the country.

"We have informed all representatives of foreign shipping lines to report themselves by tomorrow (Tuesday) at the latest or we will impose sanctions," he said.

Hatta mulled that his office could revoke the permits of violators. "Violating a government regulation is similar to committing a crime," he said earlier.

The ministry started monitoring shipping lines closely with the help of the shippers association after most of the 59 foreign shipping companies refused to reduce the THCs.

The government lowered on Nov. 1 the THC from US$150 to $95 per 20-foot container and from $230 to $145 for per 40-foot container.

Hatta said that his team -- assisted by the National Police and the Attorney General's Office -- have been formulating sanctions for the violators. "The first move would be reporting them to the Corruption Eradication Commission," he said.

Foreign shipping line agents violating new THC tariff:
1. CMA CGM Shipping
2. Maersk Sealand
3. Samudera Shipping Line
4. Heung A Shipping Co
5. K-Line
6. Hanjin Shipping
7. Malaysia International Shipping Corporation
8. Wan Hai Lines
9. Evergreen

Source: Ministry of Transportation