Imported goods to cost more after move by shippers

Shipping companies say they are forced to find ways to increase their revenues since global traffic continues to nosedive because of the economic crisis.

The cost of imported goods in Qatar is expected to rise following a decision by container shipping lines to recover the full amount of discharge and loading charges from consigners beginning April 1.

The new arrangement, which has the backing of Qatar’s Chambers of Commerce according to sources, means the full terminal handling charge (THC) of QR600 (20feet) and QR1,000 (40feet) of Doha Port will be imposed by shipping companies.

Previously the shippers, according to the sources, were charging in around half the amount and billing the rest (QR395 and QR585 on 20 and 40feet respectively) to the cargo owners.

THC represents the labour cost incurred to get a container off a vessel that has docked at a local port. There are additional charges afterwards, such as agent fees (if any), port handling charges, custom clearance but they vary from port to port.

The Doha Port Authority, which has had the rates for years, has maintained that it is not behind the move, as some traders had presumed.

An official, who did not want to be named, told Gulf Times: “You need an Emiri Decree to increase any tariffs. It’s a decision taken by shipping companies collectively.”

Like much of the global shipping industry, those based in Doha are well-knit and have an umbrella body to represent them at the Chambers of Commerce.

One official of a leading global shipping line said they were forced to find ways to increase revenues since global traffic continued to nosedive because of the economic crisis.

“The shipping lines are incurring huge costs; our freight volume is dropping; we’ve got vessels being laid off. We don’t want to absorb these additional costs any more,” the official, a cargo manager, said.

According to him, freight around the world has seen a decline of as much as 35% compared with the peak in 2008.

“The situation is so bad some shipping companies are now taking orders worth $50. Our company itself is only operating on 30% capacity,” another official, a finance controller of a major shipping company in Qatar, said.

Traders and customers of the shipping lines receiving the advisories dismissed the idea as “one-sided” and said they were not consulted.

“You are telling me these enterprises had been paying half the THC out of their pockets for years. What are they? Charities?” one official of a giant trading group, said.

His company received the notice of the change by the shipping line they deal with on March 9. Others said they were already locked into their respective contracts to supply items for a certain period of time and could not re-negotiate the possible increases, thereby incurring losses. The THC of Doha Port for exports is QR300 (20feet) and QR500 (40feet) but that does not significantly affect outbound cargo.