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FAR EASTERN FREIGHT CONFERENCE (FEFC)
Review of ISPS Charges
FEFC Members Lines are currently in individual carrier discussions with certain European terminal operators who have recently announced their intention to start charging an ISPS terminal surcharge. These discussions by the individual carriers and terminals are currently ongoing to establish the rationale and cost element components of the terminal ISPS surcharges being proposed. Individual carriers have not yet fully accepted the Terminals’ arguments for imposing the proposed ISPS terminal surcharge levels, which, in some cases are being forced upon the Lines. Failure to agree could cause severe disruption to the movement of cargo.
In the meantime the FEFC has conducted its own investigation into its Member’s costs associated with ISPS vessel certification, the administrative costs of processing the charge of the terminal surcharge costs to shippers and consignees, and the cost charged by the terminals for empty, and transhipment moves. The result of this investigation is that the Lines will incur costs of Euro5.00 per container at ports in Northern Europe, Scandinavia, the Baltic, and the Mediterranean. For the United Kingdom the charge will be £3.50 and £1.50 per container for those Terminals who do not charge for empties and transhipment (presently Felixstowe, Southampton, Thamesport and Tilbury). This is due to the different method of charging by the terminals.
This Carriers' charge will be in addition to the charge levied by the Terminals on the Lines for each container moved.
In the light of these extra costs the FEFC Member Lines would like to announce that, with effect from the 15th September 2004 they will tariff an “add on” charge, which will be in addition to the Security Charge levied by the Terminals, as follows:-
(a) For Containers moved to or from Ports in North Europe, Scandinavia, the Baltic
and the Mediterranean Euro 5.00
(b) For containers moved to, or from the ports of Felixstowe, Thamesport, Tilbury and
Southampton where Lines recover the Security Charge from shippers/consignees GBP 1.50
(c) For Containers moved to, or from all other ports in the United Kingdom GBP 3.50
The level of the Terminal Charge to which the above charges will be added will depend on the outcome of negotiations between the Terminal and the Lines. These charges are payable by the shipper/consignee in Europe.
As negotiations are continuing between Lines and Terminals, the Member Lines have agreed that they will review these charges after 90 days to assess any changes that may have come about from the individual negotiations currently taking place.
On behalf of Member Lines of the FEFC
London, 13th August 2004
Contact:
Rod Riseborough Tel: 020 7403 1700
Bridge House Fax: 020 7378 6691
4 Borough High Street Email: rodriseborough@fefclondon.com
London SE1 9QZ Website: www.fefclondon.com
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