Shippers reject cargo delay penalty imposed by firm

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Jul 2010

Shippers have vowed not to pay a penalty for cargo delays imposed by the Mediterranean Shipping Company two weeks ago, terming it oppressive.

The Kenya Shippers Council (KSC) on Thursday told its members to ignore the Vessel Delay Surcharge (VDS) and called on the government to fast-track the enactment of commercial maritime laws to safeguard cargo owners against unjustifiable charges.
An advert carried in the local dailies by the Mediterranean Shipping Company announced the levy.
“Please be informed that due to persistent berthing delays and poor operational performance at the Port of Mombasa we have decided to apply congestion surcharge of $100 per Teu on import cargo with effect from August 1, bill of lading date,” read the advert.
The container population at the yard does not warrant any such charge, said KSC chief executive Gilbert Langat.
“It is the council’s view that there is no congestion at Kilindini to warrant such a surcharge by MSC or any other line,” he said.
There were 9,944 Teus at the port by Thursday compared to the installed capacity of 14,200 Teus, port officials said.
KSC and the Intergovernmental Standing Committee on Shipping (ISCOS) also want the shipping company to withdraw the notice.
“The declaration of the surcharge contravenes the regional practice of VDS-congestion consultative process for introducing such charges,” ISCOS secretariat said in an advert in local dailies.
The Kenya Maritime Authority (KMA) also called on MSC to “withdraw the intended imposition of the congestion surcharge.”
KMA attributed delays in vessel berthing to issues outside the control of the port.
“We believe that in these circumstances there is no congestion at the port and the imposition of a congestion surcharge would be an unfair burden on trade and the economy, with serious implications (of) a huge increase (in) transportation costs,” said a KMA notice.
In its statement, the Kenya Shippers Council appealed to the government to fast-track enactment of the Commercial Maritime Regulations, developed under the Merchant Shipping Act 2009, so as to shield cargo owners from unfair treatment by maritime service providers.
KMA has finalised the regulations, which are now with the Minister for Transport for deliberations with relevant parliamentary committees and onward transmission to the Attorney General for drafting, according to a source who cannot be named since he is not authorised to speak for the organisation.

Source: Business Daily Africa