‘Adjustable’ surcharges raise hackles ALAN PEAT PRICE COLLUSION amongst shipping lines has met with the ire of the SA Shippers’ Council (SASC) – with the threat that this might be combated with both complaints to the local and the European Union (EU) competition authorities. “We have numerous examples of the shipping lines colluding to implement general rate increases and/or various surcharges on freight,” said SASC executive director, Nolene Lossau. “In principle, we object to any surcharges on seafreight and we are continuously trying to get the shipping lines to implement “all in” freight rates. This is part of the on-going international battle by shippers’ bodies against the shipping line conferences – whose decisions on surcharge and rate matters tend to be universally accepted by members, and then followed by most of the other, independent carriers. The latest skirmish in SA relates to one of the “iniquitous” surcharges – the bunker adjustment factor (BAF) - which is a “fuel cost surcharge” and adjusted to fit a formula known only to the conferences, according to an industry source. It follows a triumph for shippers earlier this year when – at a Cape Town meeting between the council and senior representatives of the London-based Europe/SA Conference (ESAC) – the conference gave up attempts to inflict another controversial surcharge on shippers.
