Shippers to discuss THC issue at WTO

The Jakarta Post, Jakarta

The Federation of ASEAN Shippers' Councils (FASC) plans to bring its demand to abolish terminal handling charges (THCs), and other surcharges imposed on shipping companies, to the World Trade Organization (WTO).

FASC chairman Suardi Zen announced the plan on Wednesday, citing a resolution drawn up by five members of FASC -- Malaysia, Indonesia, the Philippines, Singapore and Thailand -- during its 28th annual general meeting here.

"We have been fighting for (the abolition of THCs) for more than one and a-half years, but no settlement with the firms has been achieved so far. That's why we've decided to bring this issue to the WTO," he said.

He did not mention when the complaint would be submitted.

Suardi, also the chairman of the Indonesian National Shippers Council (INSC), said that abolishing THCs and other surcharges was vital as at present they made up more than 10 percent of the total shipping costs that shipowners had to bear.

Indonesian shipping companies spent $1.5 billion a year on THCs and other surcharges, while 2002 data showed ASEAN shipping companies spent $3.6 billion, he said.

INSC deputy chairman Toto Dirgantoro said other surcharges imposed on shipping firms varied but included fuel surcharges and currency adjustment charges.

"If we succeed in making the WTO listen, the WTO will organize a complaints settlement process and ... a council to reach a decision over the matter.

"If no agreements are reached through the council, then we could organize retaliative measures, which are regulated under the WTO," he said. (006)