Air cargo terminal involved in terminal fee hike conflicts

The conflicts between terminal operating companies and the trading industry regarding rising air cargo terminal fees at Inchon International Airport have deepened.

The Korea International Trade Association (KITA) unveiled on June 22 that it will decline to pay terminal fees as it is suspicious about collusion between stevedorers after seeing simultaneous rates hikes.

"Unless this plan is nullified or the fees reduced, we will file this with the Korea Fair Trade Commission, charging that there was unfair collusion, and push for nonpayment," said an associate.

American Electronics industry IBM, Intel, Compac Korea also held a meeting on June 25 to discuss this issue, preparing countermeasures and proposals through AMCHAM (The American Chamber of Commerce in Korea).

Korean Air, Asiana Airlines, and the Korea Airport Service all announced recently that they will charge storage fees or stevedoring fees for cargoes waiting less than 24 hours, which had been free, and would also raise fees for other cargoes as well. Increases will apply to cargo terminals at Inchon International Airport.

KITA estimated that the additional payments would reach over 90 billion won, including Samsung Electronics taking on an additional burden of 10 billion won, according to the proposed fee hikes and new fee introductions, as well as cause custom clearance delays.

The Korea Airport Service said, "The increases are merely a reflection of the relocation costs involved with moving to Inchon. Other companies have also followed suit."