Jordan Times
Friday, October 1, 2004
Shipping companies begin
imposing extra fees on Aqaba-bound containers
By Khalid Dalal
AMMAN — Starting today, international shipping lines will impose extra fees on
containers heading to the Kingdom's Aqaba Port from Asian and European ports.
“The decision comes in line with additional transport fees being imposed by
international shipping firms on containers shuttling from one port to another.
It has nothing to do with the [congestion] situation in Aqaba,” said Jordan
Shipping Agents Association (JSAA) Chairman Rudain Kawar.
According to Kawar, the main reason behind the increased fees are higher
international steel and fuel prices.
The JSAA chief indicated that transport fees will now increase by $150 on each
20 feet container and by $300 on every 40 feet container heading to Aqaba from
Southeast Asia and by $250 on each 20 feet container and $500 on every 40 feet
container coming from Japan.
From European ports, the fees will increase by $150 on each 20 feet container
and by $200 per 40 feet container.
Among the major lines increasing transport charges between Aqaba and Asian ports
are PIL, APL, Evergreen and Cosco while those raising the fees on containers
destined from Europe to Aqaba Port are P&O, CMA, Contship and MSC, Kawar
remarked.
General Association of Foodstuffs Merchants President Tariq Khouri said more
transport fees will result in citizens incurring higher prices in the domestic
market.
The extra fees imposed on Aqaba will come while the port is struggling with
congestion fees imposed by international shipping lines several months ago on
containers heading to Aqaba.
These surcharges stand currently at $200 and $400 on each 20 feet and 40 feet
container respectively coming from the Far East, $450 and $900 on each 20 feet
and 40 feet container heading from Europe, $150 and $300 on 20 feet and 40 feet
container destined from Mediterranean countries and $150 and $300 on 20 feet and
40 feet container respectively coming from the US ports.
These surcharges alone, which came as a result of ships facing delays at Aqaba
Port and consequently incurring increased operational costs, have resulted in
the national economy losing around JD6-8 million per month, according to
experts.
To reduce the impact of the newly-imposed extra fees on the prices of
commodities in the local market, Khouri suggested that the government abolish
custom duties on the containers heading to Aqaba Port.