Stevedoring rates hike Aug. 1

Stevedoring rates in container-dedicated terminals in Pusan went up by 5% on average as of August 1st.

Operating companies in container dedicated terminals such the Hyundai Busan Container Terminal (HBCT), Pusan East Container Terminal (PECT), and Uam Container Terminal (UCT) turned notice in to Pusan Regional Maritime Affairs and Fisheries on stevedoring rates hikes and enforcement as of August 1st.

Based on this notice, from August 1, HBCT and the Hyundai Kamman Terminal, both of which are operated by Hyundai Merchant Marine, will raise stevedoring rates by 2.0%.

Three other operating companies, Hanjin Shipping, Global Enterprises Ltd., and Korea Express at PECT and the Kamman Terminal, will boost rates by 5%, while the Uam Container Terminal will raise them 4.8%.

HBCT and the Hyundai Kamman Terminal tried to gently raise rates this year because they jacked up rates a hefty 8.1% last year in contrast to other terminals which raised them only 5%. Each terminal may raise stevedoring rates by 5% annually on average.

However, it seems doubtful that rates hikes will hit those levels because most foreign shipping companies are opposed to it. A source in a foreign shipping company said, "Because cargoes and rates hit rock bottom amidst the global economic slow-down, it can't make sense to raise stevedoring rates without any terminal service improvements."

Related to this, a source working for a container-dedicated terminal said, "This raise is minimal considering the general stevedoring hike level, 5%. We are going to try hikes at this level at most, though we know it won't be easy."

Meanwhile, some shipping companies expressed dissatisfaction with a letter from the minister of MOMAF that instructed them to abide by set stevedoring rates, rather than engage in bargaining with stevedoring companies. The Federal Maritime Commission also has been keeping its eyes on the situation.