Middlemen in shipping and logistics at it again, lobbying for anti-competitive charges on exporters and importers?

It was reported last week at the AGM of the Non-Vessel Operating Agents (NVOCC) under the banner of SLANA (Sri Lanka Association of NVOCC Agents) calling for “reinstatement of terminal handling charges”.

- BY A SPECIAL CORRESPONDENT

This was the call by chairperson Swabha Wickramasinghe saying it has impacted the Port of Colombo. In order to understand the claim, we contacted a terminal operator at the Port of Colombo, who wanted to be anonymous in the comments.

Q: What is the Terminal Handling Charge (THC) in Colombo and what is the tariff item to refer?

A: There is no published tariff item called THC. It is a terminology used by some service providers for port handling costs, we charge the shipping lines for our services provided to them at the terminal. It is generally known as the stevedoring cost. These are fees imposed by terminal operators for handling cargo at ports, terminals, or container freight stations on behalf of the carrier. These charges cover services like loading, unloading, storage, documentation, movement and security and vessel-related costs which we will bill the shipping line or its agent.

Q: It was recently reported by SLANA, the NVOCC service providers, that THC must be reinstated. This means that these charges are not allowed in Sri Lanka to be collected. How do you respond and recover your costs?

A: There is now in Sri Lanka prohibiting the collection of charges by terminals or by any service provider to a customer. We bill it to the shipping line, and they pay us when we bill the services to each ship that calls.

Q: Then what is this call to the Government by some shipping agents to reinstate THC?

A: We have no idea, but we are aware that the Government of Sri Lanka published a gazette in 2014 to say that freight cannot be unbundled when quoting to an exporter or an importer and must be charged only to a contracting party. We understand this was to reduce nontransparent activities, it would be best asking the Sri Lanka Shippers’ Council (SLSC) in this regard.