ELIMINATING OCEAN SHIPPING SURCHARGES

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ABOUTXENETA

At Xeneta we believe there is an untapped potential for everyone in the industry, to systematically learn from our individual and collective efforts. We hold true that "if you cannot measure it, you cannot improve it". That’s why we think actionable metrics is the key to continuously evolve for every business, and ultimately the entire industry. Rethinking global logistics is the vision of Xeneta.

With international experience from the logistics industry, we have first-hand knowledge of the challenges related to high volatility and lack of transparency in the ocean freight market. By combining logistics background and information technology expertise, we found the solution to these challenges.

WE ARE TRANSFORMING GLOBAL LOGISTICS

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SHIPPERS OF GOODS AROUND THE WORLD HAVE HAD ENOUGH OF DEMANDS MADE BY

CARRIERS AND FORWARDERS FOR THE PAYMENT OF CHARGES THAT ARE POORLY

EXPLAINED OR OUT OF PROPORTION FOR ANY SERVICE PROVIDED.

- The Secretary General of the Global Shippers Forum (GSF)

AS SUCH, THE GROUP, FORMED BY THE AMERICAN ASSOCIATION OF EXPORTERS AND IMPORTERS (AAEI), THE ASIAN SHIPPERS’ ASSOCIATION (ASA) AND THE EUROPEAN SHIPPERS’ COUNCIL (ESC), IS CALLING FOR CONTAINER SHIPPING SURCHARGES TO BE ELIMINATED BY 2020.

SURVEY RESPONDENTS SAY ‘NO’ TO SURCHARGES

OUR LATEST SURVEY SEEMS TO AGREE WITH THE GSF WITH 100% SURVEYED

AGREEING THAT OCEAN SHIPPING SURCHARGES SHOULD BE ELIMINATED.

UNJUSTIFIED SURCHARGES

AS SUCH, THE GROUP, FORMED BY THE AMERICAN ASSOCIATION OF EXPORTERS AND IMPORTERS (AAEI), THE ASIAN SHIPPERS’ ASSOCIATION (ASA) AND THE EUROPEAN SHIPPERS’ COUNCIL (ESC), IS CALLING FOR CONTAINER SHIPPING SURCHARGES TO BE ELIMINATED BY 2020.

GSF NOTED THAT THE LEVYING OF SURCHARGES AMOUNTS TO A NON-TARIFF TRADE BARRIER AND CAN BE DAMAGING TO THE DEVELOPMENT OF INTERNATIONAL TRADE.

THE MANDATORY CONTAINER WEIGHT VERIFICATION THAT WENT INTO EFFECT ON JULY 1 SEEMED TO BE THE LAST STRAW.

GSF RECEIVED REPORTS OF WHAT IT DESCRIBED AS UNJUSTIFIED SURCHARGES PARTICULARLY IN AFRICA, ASIA AND OTHER DEVELOPING REGIONS.

NOT ALL AGREE WITH ELIMINATING SURCHARGES

HOWEVER, NOT ALL AGREE WITH THE ELIMINATION OF

SURCHARGES. ACCORDING TO

MARTYN BENSON AN INDUSTRY

EXPERT ACTIVE IN THE OCEAN

FREIGHT BUSINESS, SOME

SURCHARGES ARE JUSTIFIABLE AS

COST RECOVERIES OF VARIABLE

ELEMENTS.

SHIPPING CONTAINERS HAS BECOME A COMMODITIZED BUSINESS, THERE IS NO

ROOM FOR MISTAKES AND THE BASIC SEAFREIGHT IS USUALLY THE BARE BONES

CHARGE FOR RENTING A SPACE ON THE VESSEL- EVERYTHING ELSE IS EXTRA.

- Martyn Benson

ACCOUNTING FOR SURCHARGE PAYMENTS

IF THEY USE INCOTERMS, THEY CAN BUY EX-WORKS OR FOB AND CONTROL THE SUPPLY CHAIN. IF THEY LET THEIR SUPPLIER ARRANGE SHIPPING, THEY HAVE NO CONTROL OVER THE CHARGES APPLIED”.

ACCORDING TO THE LOADSTAR, ONE OF THE KEY PLANKS OF THE GSF’S PROPOSED REFORMS IS GETTING RESPONSIBILITY FOR PAYMENT OF ANY SURCHARGES SPECIFICALLY ACCOUNTED FOR IN THE 2020 REVISION OF INCOTERMS BY THE INTERNATIONAL CHAMBER OF COMMERCE.

INDEED, ROBERT KEEN, DIRECTOR GENERAL OF THE BRITISH INTERNATIONAL FREIGHT ASSOCIATION (BIFA), TOLD THE PUBLICATION, “IF SHIPPERS ENTER A CONTRACT TO BUY GOODS THEY SHOULD KNOW EXACTLY WHAT THEY ARE PAYING.

REQUESTDEMO

LEARN HOW XENETA CAN HELPYOU GET INSIGHT AND

INTELLIGENCE INTO YOUR GLOBAL OCEAN FREIGHT PRICES AND CHANGE YOUR LOGISTICS

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