ShipOwner's Association resists integrating vessel and cargo entrance fees

The Korea ShipOwner's Association (KSA) announced November 8th that the unification of vessel and cargo entrance fees is an example of a desk plan ignoring maritime characteristics in relation to shippers and ship owners, and urged for its nullification.

The KSA insisted that unified collections are different from the principle of deciding on who is going to pay for fees using port facilities. It has been customary for shippers to pay for using port facilities and shipping companies for vessels using port facilities.

The association proclaimed that shifting the shipper's user fees to shipping companies will weaken Korean maritime fundamentals and destroy the current system of port facility user fees.

Each country has their own system for raising user fees according to their port history, traditions, and port operating system. In the case of Korea, cargo entrance fees were on shippers from the start, the proposed amalgamation goes against the fundamental system of Korean port history.

Globally and historically, the maritime industry has been under the influence of open market competition, and to impose entrance fees on carriers could weaken Korea shipping companies' competitiveness and eventually kill them.

Charging shippers higher rates would be one way to transfer the cargo entrance fees from the liners to the shippers. A shipping company official contradicted this saying that it is impossible for shipping companies to actually charge shippers for the cargo fees that the shippers are currently paying.

The Korea International Trade Association also decided it would be difficult to put together the cargo entrance fee and vessel entrance fee. KITA insisted that they abolish the cargo entrance fee, instead of transferring the duty to shipping lines.

If cargo entrance fees were transferred to shipping lines, foreign shipping companies would be upset about this because of the sudden heavy burden, a Korea ShipOwner's Association official said.