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Extras cause rising Singapore, Malaysia shipping costs: assistant minister
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11/27/2007
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Extras cause rising Singapore, Malaysia shipping costs: assistant minister
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SABAH state's Legislative Assembly was told recently that despite lowering freight charges in recent years, extra charges have increased, causing shipping costs to rise, reports Malaysia's Daily Express.
Assistant Minister of Industrial Development Jainab Ahmad told the assembly that the other charges that have increased include the terminal handling charges (THC), emergency bunker surcharges (EBS) and a Sabah port congestion surcharge (SCS).
The SCS, she said, was introduced to absorb losses supposedly incurred by shipowners due to port inefficiency where delays resulted in extra charges on carriers. The THC is imposed by the shipping companies on shippers to pay for port dues levied on carriers by harbour authorities, she said. As for the EBS, she said, it is the charge on every container to meet rising fuel costs.
"Therefore, despite freight charges decreasing over several years, ancillary charges have been increasing," she said in response to a question in the House.
Ms Jainab said that because of the insufficient container handling, boxes have been exported by transshipment through Port Klang or Singapore.
She also said the Cabotage Policy under the Merchant Shipping Ordinance 1952, enforced since 1980, does not allow foreign vessels or those without licences from the Malaysia Shipping Licensing Board move cargo from one port to another in the country.
The situation, she said, has caused the industry to act like a cartel that imposes freight charges and ancillary charges unilaterally without restriction
(source: schednet.com)
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