Sunday, October 17, 2021
HomeMaritimePSB hopeful of cut in THC by second quarter

PSB hopeful of cut in THC by second quarter

THE Philippine Shippers’ Bureau (PSB)expects a reduction in the terminal handling charge (THC) levied by international shipping lines by the second quarter of the year."We are anticipating a possible reduction in the THC within the second quarter of the year. We are still in the process of ironing some of the details of the reduction," PSB executive director Atty. Pedro Vicente Mendoza told PortCalls.For the last few years, the PSB has been lobbying to cut,if not eliminate, the THC arguing it is a form of double charging which makes Philippine products uncompetitive."As part of our efforts to reduce the THC, we will continue to seek for an open dialogue with the carriers directly or through government intervention," Mendoza in an earlier interview said.The THC is unilaterally imposed by international shipping lines on both export and import containerized cargoes purportedly to recover costs incurred at container terminals. Based on PSB records, the THC has cost Philippine shippers approximately $130 to $200 million per year. It has increased at an annual average rate of 8% (as levied by member carriers of the Transpacific Stabilization Agreement), 10%-12% (Far Eastern Freight Conference) and 24% (Intra-Asia Discussion Agreement).THC accounts for 30%-50% of the shipping cost in the RP-ASEAN and East Asian container trade.Recently, the Indonesian government unilaterally cut THC by about 20%


Please enter your comment!
Please enter your name here

4 × 1 =

- Advertisment -

Most Popular

- Advertisment -