European Shippers Council demands change in air cargo surcharge practices
2012 04 04
- Details
THE air cargo industry's practice of levying surcharges has been attacked for being an "easy means of fixing prices", according to European Shippers Council air freight policy adviser Joost van Doesburg.
Mr van Doesburg said that surcharges ought to be a part of the overall rates, he told London's International Freighting Weekly. His comments followed the European Commission awarding fines totalling EUR169 million (US$225.5 million) to some of the biggest air forwarders in the industry.
"Once again, there is proof that something is wrong with surcharges in the supply chain," said Mr van Doesburg.
"We want to change the system so that it is much more transparent and shippers can clearly calculate their costs. Surcharges should be for a short period of time, or be an actual expense. We don't want to pay surcharges for years when they should be part of the rate."
The European Competition Commission found that prior to 2007, Agility Logistics, Beijing Kintetsu World Express, Ceva and EGL, DHL Global Forwarding, DSV Air & Sea, Exel, Expeditors Hong Kong, Hellmann Worldwide Logistics, Kuehne + Nagel, Nippon Express, Panalpina, Schenker, UTi Worldwide, Toll Global Forwarding, UPS (as successor of Menlo Worldwide Forwarding) and Yusen Shenda Air & Sea Service (Shanghai) were in different ways involved in four cartels.
Said Mr van Doesberg: "The ESC really hopes that this activity belongs in the past and that freight forwarders will understand that price-fixing is not profitable or good for business."
Source Shipping Gazette - Daily Shipping News
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