The meeting serves as an annual discussion forum to exchange views and discuss the challenges facing the industry in today's trading environment. At the meeting, the shippers' councils strongly voiced support for the China Shippers' Association's efforts in questioning the legality of the imposition of THC in China. The shippers said they shared the CSA's demand to liners to seek consultation with shippers' organizations and push for more transparency on the collection of THC. The shippers agreed that a competitive liner operating so that shippers environment is ideal for international trading activities and therefore collective action by carriers' Conferences and Agreements to set rates and rules have to be strictly monitored so that shippers' interests would not be impaired. We look forward to the success of the investigation of the THC issue in China.

The shippers called for the roll-back of THC into ocean freight rates and for more transparency on the components of THC. If it is not immediately achievable, THC, being part of freight, should be collected from the party that pays the freight.

Surcharges

Shippers have demanded the simplification of the tariff system that is now characterised by a complicated, non-transparent system of numerous undesirable and unsupported surcharges such as THCs, Peak Season Surcharge, Bunker Adjustment Factor, Documentation Fee, War Risk Surcharge, gate charges, and so forth.

The shippers reiterated their full support of global anti-terrorist security measures but stressed that such measures must not cause unnecessary compromises in commerce. As an example, it was cited that the 24-hour Advance Manifest Submission (AMS) of US Customs has resulted in the lengthening of the order lead time by a couple of days, bringing additional costs to the shipper.

Shippers expressed their dissatisfaction over shipping lines taking advantage of US Customs security rules by levying charges like the AMS surcharge.

Shippers see these enhancements in security as opportunities for moving towards greater data automation. Shippers, like container terminal operators, are aware that the benefits of automation include savings in administrative costs, reduction of errors due to transplanting of data, elimination of duplication of input, and the overall reduction of operational costs. Greater automation should therefore lead to less cost for all parties. Financial incentives including waiving the US$25 advance manifest submission charge and lowering/cancellation of the documentation fee should be the correct inducement for shippers to go for greater automation.

In Europe, some container terminals have started to impose a security charge. The shippers expressed concern that the move will become widespread and be copied here in the region. It was agreed that moves would be taken to prevent this charge from being imposed in the countries represented at the meeting.

The Tripartite Shippers' Councils' Meeting also discussed the format of future meetings and agreed that the next gathering will be called the Asian Shippers' Group Meeting, to be held in Korea in 2004.