Before a global shipping competition heats up, Prime Minister Nguyen Tan Dung has recently dispatched the Document 1369/TTg-KTN to assign Vietnam Chamber of Commerce and Industry (VCCI) to conduct and collaborate with other ministries, branches and councils to set up the Vietnam Shippers Council.
Mr Phan Thong, Deputy General Director of Sea and Air Freight International (SAFI) and a member of the founding board, said: “The Vietnam Shippers Council will be a counterweight to foreign ship-owners to protect rights and interests of Vietnamese shippers in particular and lay the groundwork for settling import-export issues in general.
The Prime Minister has issued the Official Document No. 1369/TTg-KTN to assign VCCI to conduct and collaborate with other ministries, branches and councils to set up the Vietnam Shippers Council. As a shipping firm, would you mind telling us the necessity of this formation?
I am deputising shipping companies, or transport contractors. For shipping companies (like ocean-going or airborne firms), we are indirect shippers because we receive consignments from exporters - the direct shippers. Personally, like other persons, I find the creation of this council extremely essential for the following reasons.
- International ocean-shipping companies, airlines and other transport means owners always hold advantage in acquiring precedence in signing shipping contracts with importers, exporters and international trading companies. Shipping firms usually unilaterally impose en-route risk disclaimers on shippers or unilaterally subject docking, congestion, fuel and exchange rate surcharges or solely fix high prices for their services.
- Separate shippers are not strong enough to refute or request changes as shipping firms usually join hands with each other in transport councils. Therefore, shippers are usually unfairly treated.
- In fact, many companies in regional countries and territories like Singapore, Hong Kong and New Zealand also used to encounter similar issues and they have their shippers councils to deal with the difficulties.
Thus, the formation of the Vietnam Shippers Council ia crucial or even indispensable.
Such problems in shipping market have long existed. Why did Vietnam start joining forces to set up the council?
Although these problems have existed for a long time, their impacts on local enterprises soared when Vietnam joined international trade playgrounds like WTO.
At forums, seminars and meetings, specialists and insiders usually proposed setting up such a council and there used to be mobilisation campaigns for this move. However, to establish the shipper council, we must have participating shippers but they did not wish to take part after dealing with their terminal handling charge.
Not until the Government joined and assigned the Vietnam Chamber of Commerce and Industry to conduct and collaborate with related ministries, branches and industry associations to set up the Vietnam Shippers Association, the mobilisation apparatus was officially started and generated real motive power.
A hot issue in relations between Vietnamese shippers and foreign shipping firms is terminal handling charge (THC). As a member of the mobilisation committee for the formation of the Vietnam Shippers Association, what do you think about this matter?
THC is a charge made for certain handling services performed at terminals. Thus, this charge is natural. This kind of fee is counted in the shipping bills signed between shippers and shipping firms but shipping firms can include or exclude this charge from the charge list. The debate comes from the use of this charge. Several shipping firms count this charge as a surcharge to easily make change.
Personally, I want to know clearly about the charge and its components. Each company needs different treatments because its nature is not the same as others. Our shippers need to understand this to negotiate shipping contracts. Irrational clauses put forth by shipping firms need to be considered and negotiated. The shippers association will represent shippers to negotiate this issue.
T.D
Vietnamese
