- Asian shipowners decry confusing fee hikes at Suez, Panama
- The Asian Shipowners Association Shipping Policy Committee discussed recent developments on anti-bribery issues such as the alleged demand for facilitation money at the Suez Canal
- The SPC’s legal counsel apprised the meeting on the latest developments in the review of the current anti-trust immunity system in various jurisdictions, including the US
Asian shipowners voiced concern at the Suez and Panama canals new fee increases even as they reaffirmed their determination to carry out their tasks as global logistics providers to minimize supply chain disruptions posed by the COVID-19 pandemic and the Ukraine crisis.
Asian Shipowners Association Shipping Policy Committee (SPC) members discussed broad policy issues concerning the international maritime industry at their 34th Interim Meeting on April 18.
The online meeting was chaired by Keiji Tomoda, vice president of the Japanese Shipowners’ Association. It was joined by 24 delegates from ASA member groups from the Association of Southeast Asian Nations, Chinese Taipei, Hong Kong, Japan and Korea.
The SPC heard members’ complaints of confusion over how the Suez Canal Authority (SCA) arbitrarily imposed new charges on March 1 at only 48 hours’ notice, and then announcing another fee revision for May 1.
The shipowners were upset by the SCA’s imposition of a roughly a 7%-20% toll hike for many types of vessels, in addition to a 6% tariff hike for most types of ships on February 1 this year.
The committee expressed its concern that high uncertainty in the mechanism of operating the surcharge may damage the stability and reliability of the canal, and that it was important for the industry to jointly raise its voice against the SCA’s actions.
The ASA members agreed to continue tackling this issue in close cooperation with other international organizations, such as the International Chamber of Shipping (ICS), so as to reflect all stakeholders’ propositions.
As for the Panama Canal, the delegates were disappointed by the Panama Canal Authority (ACP)’s proposal on April 1 for a new toll system, as the mark-up for some types of vessels may exceed 100% by 2025, compared with the current toll.
Delegates said such a significant toll hike may not be compatible with the long-term sustainability required by a global infrastructure. They agreed to submit comments to the ACP during the formal consultation period.
Helio Vicente, manager of Shipping Policy of the ICS, presented the chamber’s recent engagements on COVID-19, protectionism, trade, green responsibilities and other issues.
The delegates echoed Vicente’s emphasis on the importance of reopening the World Trade Organization negotiations for the liberalization of maritime services as soon as possible.
The committee reported recent developments involving on anti-bribery issues, where the delegates renewed their determination to combat corruption. They were encouraged by a recent SCA circular proclaiming its zero-tolerance of any act of facilitation payment or gift during Suez Canal transit as a significant fruit of efforts of all stakeholders concerning this issue.
Robert K. Magovern, vice chair of transportation and trade at Cozen O’Connor and the SPC’s legal counsel, discussed the latest developments concerning the review of the current anti-trust immunity system in a number of jurisdictions.
Delegates reaffirmed the ASA’s long-standing policy that the anti-trust immunity system for cooperative carrier shipping agreements was indispensable for the healthy development of the liner shipping industry and the maintenance of a reliable service to the entire trading community.
