Shippers’ Council protested against wrongful congestion surcharge

Mr. Gad Schaefer, Chairman of the Israeli Shippers Council, protested last week to Mr. Peter Webber, Manager EMTA Europe Mediterranean Trade Agreement concerning the wrongful collection of congestion surcharge in Ashdod Port.
 
In a strongly phrased letter Mr. Schaefer argued that: "For over three years since April 2002, the EMTA Israel sector has been collecting "Congestion Surcharge" in Ashdod Port at the high rate of 7% of the freight".
 
Schaefer pointed out that the Israel Shippers' Council were prepared to agree to the surcharge on the following conditions, which were in force and acceptable for decades with all conferences serving Israel:
 
1) congestion damages following specific strike or port sanctions measured by an objective third party.
 
2) 50% congestion damages covered by shippers and 50% by the carriers.
 
3) agreed in advance payment schedule spread over a few months, at least and setting the rate so that it would be a marginal addition, never more than 3-4% of the freight charge.
 
According to Schaefer, there was no agreement between EMTA and ISC representatives because the EMTA representatives demanded that the surcharge be set at the unprecedented rate of 7% and were not only not willing to accept a third party objective check but were not even willing to quantify themselves the damages.
 
The EMTA, Conference which carries almost all of the trade between Northwest Europe and Israel, decided unilaterally to implement the Congestion Surcharge of 7% and without declaring an end date.
 
The ISC protested against this surcharge and called the shippers to object to paying the surcharge. Many shippers objected and many succeeded in having the payment waived. Nevertheless, the Conference members persisted declaring that this surcharge is due to ongoing congestion in Ashdod Port. Actually, they have turned a temporary surcharge into a permanent addition to the freight charge at Ashdod Port.
 
Schaefer added that in February 2005, a significant reform in Israel Ports was instituted. As a result of the reform and new management of Ashdod Port, there has been consistent improvement in Ashdod Port service reflected in significant decrease in congestion and wait time in the port. Additionally, the capacity of container decks has been increased following the initiation of part of the new Ashdod Port. Container wait time has decreased 76% between March and July 2005.
 
Schaefer added that:"after I met with Ashdod Port Management and confirmed that this improvement is not temporary, I approached again the shipping agents representative of Conference members in Israel and asked them to cancel this unjustified surcharge.To my dismay, it seems that it is difficult for the Conference members to relinquish themselves of this baseless income and my appeal went unanswered".
 
Schaefer warned that :"If the congestion surcharge in Ashdod Port is not cancelled, we will have no alternative but to appeal to the Israel Antitrust Authority and to other authorities in order to put an end to this exploitation using this baseless surcharge".