Members of the Europe/Mediterranean Trade Agreement (EMTA) decided to abolish the collection of surcharge for congestion in Ashdod's Port as from 15th January 2006.
The decision to abolish the surcharge is seen as a victory for the Israel Shippers Council whose chairman Mr. Gad Schaefer, protested to Mr. Peter Webber, Manager EMTA Europe Mediterranean Trade Agreement concerning the wrongful collection of congestion surcharge in Ashdod Port.
Following the announcement, Mr. Gad Schaefer, the Israel Shippers' Council chairman noted that the decision marks an end of an era. He added that, "For over three and a half years, since April 2002, the EMTA Israel sector collected 7% Congestion Surcharge in Ashdod Port, which was an unjustified burden on the Israeli import and export sectors".
The congestion surcharge was cut to 3.5% of the freight beginning November 1st, 2005.
Mr. Peter Webber who announced the decision said that the abolishment of the congestion surcharge was a direct result of increased efficiency of the port in handling containerships.
Following the successful ports reforms in February 2005, the Israeli Shippers' council argued that as a result of the reform and new management of the Ashdod Port, there has been consistent improvement in Ashdod Port service. This has been reflected in significant decrease in congestion and wait time at the port.
Additionally, the capacity of container facility has been increased following the initiation of part of the new Ashdod Port. Containerships Average operational waiting time has also decreased some 45% between March and December 2005 (from 15 hours last year to 8.2 hours).
The EMTA, Conference which carries almost all of the trade between Northwest Europe and Israel was set up in 2000. its members are: Hamburg Sued, Iscont Lines, K Line, A.P. Moller-Maersk, MSC, P&O Nedlloyd, Safmarine, Zim Integrated Shipping.
