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Press Release - Hong Kong Shippers Support the Ban on P3


Press Release

                                                18 June 2014

 

Hong Kong Shippers Support the Ban on P3

 

The Hong Kong Shippers” Council welcomes the decision of the Ministry of Commerce to ban the formation of a consortia by Maersk, MSC and CMA-CGM (P3).  The Ministry of Commerce announced yesterday that in accordance to the Anti-trust Laws of the People’s Republic of China, the application of forming the consortia has been rejected. The announcement clearly stated that P3 would lead to over market concentration, which could have negative impact on fair market competition.

 

The Hong Kong Shippers’ Council would like to express its gratitude to China Shippers’ Association for it efforts in pursuing the decision.

 

In Hong Kong, the fact that over 90% of exports are under Free-On-Board (FOB) terms entails that the choice of carrier is in the hands of overseas buyers. Consequently, shipping lines after they come to terms on sea freight rates with overseas buyers, implemented numerous local charges and surcharges on Hong Kong shippers in order to increase revenue.  Many of these local charges and surcharges are hardly justifiable. In addition, shipping lines make use of their subsidiary or associate freight and logistics companies to introduce further local charges. These numerous charges substantially inflate the logistics costs and erode the competitiveness of Hong Kong.

 

Despite most of these local charges are unreasonable and unjustifiable, Hong Kong shippers having no choice but to pay in order to complete export.

 

Although Competition Laws have been erected in Hong Kong, nothing has been done on issues like the P3 and charges that shippers have been forced to pay. Hong Kong shippers are calling for review of the Competition Laws in both content and practices to stop the abuse to competition in the freight and logistics market.

 

In case of inquiry, please contact Mr. Sunny Ho at telephone: 2211 2332, or e-mail: sunnyho@hkshippers.org.hk.

 

 

                                                                                                                                                                                                                                                                                 Willy Lin

                                                                                                                                                                                                                                                                                Chairman