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Stabroek News

Shipping lines say higher rates will not change
published: Friday | June 2, 2006

Tyrone Reid, Staff Reporter


Dr. Omer Thomas, then executive director of the Bureau of Standards (centre), signs the Memorandum of Understanding between the bureau and Northern Caribbean University, at the official opening of the bureau's fair at its Winchester Road offices, on Tuesday. At left is Senator Kern Spencer, Minister of State in the Ministry of Industry, Commerce, Science and Technology, and Dr. William Smith, vice-president Northern Caribbean University. - JUNIOR DOWIE/STAFF PHOTOGRAPHER

DESPITE A flurry of criticism from the Government and the Shipping Association of Jamaica (SAJ), the West India Trans Atlantic Steam Shipping (WITASS) lines have declared that their decision to reintroduce a congestion surcharge and increase its terminal handling charge (THC) is irrevocable.

An unflinching Graham McAllen, managing director of Hapag-Lloyd (Jamaica) Limited, the leading WITASS line in Jamaica, told The Gleaner on Tuesday that the group's decision was final.

"There is no review being made for that action for the 15th of June (and) there is no review with regards to the recovering of the cess," Mr. McAllen emphasised.

The London-based WITASS Group, which represents Hamburg-Sud, Hapag-Lloyd, CSAV and CMA-CGM, announced that the congestion surcharge would come into effect at Port Bustamante on June 15. Meanwhile, the increase in the THC will come on-stream on June 1.

The announcements drew the ire of the Government and the SAJ. While the SAJ "condemned" the spike in the THC, Robert Pickersgill, Minister of Housing, Transport and Works, said the reintro-duction of the surcharge was unwarranted.

"The present level of congestion in Kingston should not cause the lines to impose a surcharge," Minister Pickersgill said in a release on the weekend.

In response, Mr. McAllen said, "That's their opinion! We are incurring a cost because of the congestion and we have to have that recompensed."

However, Minister Pickersgill con-ceded that the waiting time for vessels at Port Bustamante had increased to an average of three to four days since the signing of the US$210 million ($1.37 billion) Maersk deal.

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