The BIFA (British International Freight Association) has long supported the end of spurious surcharges. Recently, the association welcomed announcements from several container shipping companies regarding the cancellation of their Low Sulfur Fuel Surcharges.
The Trade Association previously accused carriers of speculation back in 2018. At the time, lines announced early Low Sulfur Surcharges well ahead of the official IMO 2020 regulation, which finally took effect on January 1, 2020.
Robert Keen, Director General of BIFA, stated: “Forwarders dislike tariff surcharges on any kind of shipment. We hope other lines will follow suit and stop these charges. Carriers must reconsider their entire surcharge policy, from container fees to port congestion.” BIFA also noted that the number of surcharges and taxes rose steadily in recent years, often without any clear explanation.
While some companies discontinued fuel surcharges, new fees are already emerging. One sea carrier is currently introducing a Merchant Haulage charge. Meanwhile, another line is implementing a new Container Compliance Charge.
Regardless of the transport mode, shipping lines should not impose these arbitrary additional fees. The Director General of BIFA concluded that carriers should include all operational costs directly in the standard freight rates. Shipping lines can then manage any market fluctuations through the freight rates themselves.
