A Mediation Committee set up to resolve a long standing dispute between shippers and shipping agents over terminal handling charges released a report last week. However the disputes seems to be far from settled. According to the report a consensus between the stake holders was reached where the THC for 20ft container would be reduced by US$ 4 and US$ 8 for a 40ft container, an official of the Ceylon Association of Shipping Agents (CASA) told the Island Financial Review. He said that the Chairman Captain Ajith Peiris had represented the interests of both CASA and the Sri Lanka Freight Forwarders Association (SLFFA) while the Sri Lanka Shippers’ Council (SLSC) was represented by its former Chairman Ananda Wijesuriya. "There was consensus between the stakeholders who took part in the deliberations of the Mediation Committee and we have circulated the report amongst the membership," the official form CASA said. However, the Island Financial Review learned that the SLSC had only heard about the report and not seen it as yet. "We are not happy with what we heard the report had to say about the THC and our members will meet this week and will take our case to the Chairman of the Mediation Committee Shantha Weerakoon," an official of the SLSC said. Weerakoon is also the Director General of the Merchant Shipping Division of the Ministry of Ports and Aviation. The dispute lasting for more than a decade was taken to courts where the Chief Justice requested that matter be resolved through the mediation framework. An official of the Merchant Shipping Division, who also did not want to be named, said: "Since we operate in an open economy there is no possibility of government trying to enforce price regulations on something such as the THC, which is practiced else where in the world. This is perhaps why the court ruled that the stakeholders should resolve the matter through mediation. They will have to come to a consensus." He went on to say that while exporters had some grievances over the THC charge, it was not very reasonable to expect the shipping lines to bear the costs of handling cargo on land. "There is no room in the harbour and containers have to be stored at a location outside the port so obviously there would be a cost component to transport the goods to the ship for loading and one cannot expect the shipping lines to bear this cost," he said. He says on the other hand that competition had greatly reduced shipping costs. An analyst of the industry said that freight forwarders are highly competitive and resort to under cutting tactics (reduced rates) to attract businesses. |
