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The International Federation of Freight Forwarders Associations has called on shipping companies for a more transparent billing on surcharges levied relating to the continued tensions in the Red Sea
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In a position paper issued on January 16, the organization said their concern relates to not just the lack of details on the surcharges but the imposition of additional fees even in unaffected routes
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FIATA further asked shipping lines to exercise restraint on the surcharges, emphasizing that consumers ultimately shoulder the added cost
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FIATA noted the US Federal Maritime Commission’s recent announcement to hold a public hearing to examine shipping conditions in the Red Sea, in particular the implementation of surcharges
The International Federation of Freight Forwarders Associations (FIATA) has called on shipping companies for a more transparent billing on surcharges levied on containers relating to the continued tensions in the Red Sea.
In a position paper issued on January 16, the organization considered as ‘the global voice of freight logistics’, said their concern relates to not just the lack of details on the surcharges but the imposition of additional fees even in unaffected routes.
The Red Sea is a vital shipping lane linking Europe and Asia, handling approximately 15% of international shipping trade.
“The increased freight rates have been compounded by high additional surcharges which are being imposed not just on affected routes, but also on containers in unaffected destinations such as the North Atlantic,” said FIATA. “Concerns have been raised as to the lack of information on the content of such surcharges, noting that in many instances the total fees are simply invoiced ‘all in’ without itemisation of their various components.”
The organization cited its discussions with Christa Sys, Professor at the Department of Transport and Regional Economics at the University of Antwerp, who has dubbed the surcharges at an “unprecedented magnitude.”
Sys observed an incongruence between the proportion of the surcharges levied, versus the actual costs incurred in the rerouting of ships away from the Suez Canal. She noted that bunker charges have remained stable and rerouted ships would not be subject to the Suez Canal toll charges.
FIATA urged shipping lines “to exercise restraint in the imposition of surcharges, and to communicate any such additional surcharges in a transparent and clear manner,” emphasizing that this is critical to protect consumers “who will ultimately bear the burden of additional charges, particularly at a time when inflationary pressure is already keenly felt around the world.”
READ: Red Sea crisis brings higher freight to some PH shippers; but effects not yet fully felt
At the same time, the organization FIATA called on governments and all supply chain stakeholders to strengthen collaboration and dialogue on a global level address the situation.
“The global nature of maritime supply chains requires consistent monitoring and action, noting that supply chain disruptions are dependent on and touch upon many different stakeholders around the world,” it said.
FIATA noted the US Federal Maritime Commission’s (FMC) recent announcement to hold a public hearing to examine shipping conditions in the Red Sea, in particular the implementation of surcharges which it is carefully monitoring in accordance with FMC rules.
It said the current situation “requires careful management to ensure the fluidity and global connectivity of maritime supply chains, as well as safety and security for the protection of human life.”
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