Shippers' Council warns against repeal of all-inclusive freight rule

IN a united and impassioned defence of all-inclusive freight regulation, top representatives from the export, manufacturing and logistics sectors on Monday called on the Government to reject efforts to dismantle the landmark regulation that has governed freight transparency since 2013.

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At a joint press briefing held at the Ceylon Chamber of Commerce, Sri Lanka Shippers' Council and other major trade associations warned that rolling back the regulation would open floodgates to 44 hidden fees, anti-competitive practices and price manipulation, harming exporters, importers and ultimately the Sri Lankan consumers.

SLSC Chairman Sean Vandort was blunt in his criticism of what he called "parasites" exploiting the system. "Every time a Government changes, the parasites re-emerge trying to break up the all-inclusive rule for undue profit," he claimed.

He said the lobbyists want to unbundle charges and push them onto exporters and importers, knowing that every rupee increase in goods and services eventually gets passed on to the consumer.

Vandort detailed the origins of the regulation, recalling how shipping agents in 1995 began levying a so-called "THC" or terminal handling charge-a fee with no legal basis and in 1997 this arbitrary charge was extended to exports, creating chaos. The Shippers' Council, alongside chambers and Government agencies, fought back, culminating in the Gazette notification backed by then-President Mahinda Rajapaksa.

The regulation mandated all-inclusive freight pricing, ensuring all costs, including any terminal charges, be bundled and negotiated transparently through market forces.

Since the Gazette came into force in 2013, Vandort asserted, all key metrics have improved despite fear mongering efforts by groups with vested interests.

"Ship calls increased, import and export volumes rose, and port revenues grew. We have hard data since 2014 to prove this regulation helped the industry, not hurt it.

The fears they stoked never materialised," he said.