Terminal Handling Charge Shippers’ Perspective

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Background• The terminal handling charge (THC) has been an issuefor many years now. It was unilaterally imposed byinternational shipping lines on both export and importcontainerized cargoes purportedly to recover costsincurred at container terminals.• THC was first introduced in 1990 as a separate chargefrom ocean freight for all container shipments for HongKong-Europe trade by a group of carriers known as FarEastern Freight Conference (FEFC). This was followedby another group of shipping lines, i.e. Australian & NewZealand Eastern Shipping Conference (ANZESC) in thesame year.2
Background• In late 1991, Asia North America Eastbound Agreement(ANERA) also imposed THC for all container shipments.Other rate and discussion agreements adopted the THCand extended its imposition across Asia.• ANERA (which was now replaced by TranspacificStabilization Agreement serving US-Asia trade) andIntra-Asia Discussion Agreement (IADA), serving intra-Asia trade, continue to charge the THC. Since then, THChas become a conventional charge of shipping lines andhas steadily increased over the years.• Philippine <strong>Shippers’</strong> Bureau (PSB) had sought a dialoguebetween shippers and liners (IADA, TSA, and FEFC) inManila early last year but has never come up with adefinite agreement.3
Page 1: PhilippineShippers’BureauTerminal
Page 5 and 6: Contradictory Views on THCbetween L
Page 7 and 8: Liner Conference/Agreement• Sea f
Page 9 and 10: Liner Conference/Rate Agreement•
Page 11 and 12: I. Basic Cargo Handling ServicesB.
Page 13 and 14: II. Comparison between THC & Steved
Page 15 and 16: Liner Conference/Rate Agreement•
Page 17 and 18: Table II-A. Current Level of THC in
Page 19 and 20: Table III-A. Estimated Cost of THCt
Page 21 and 22: Table III-C. Estimated cost of THCt
Page 23 and 24: Shippers’ Position andAction Plan
Page 25 and 26: Discussion Points/Shippers’ Conce
Page 27: ENDThank you!27

Terminal Handling Charge Shippers’ Perspective

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