Fly by night

More and more, moving a container from A to B is becoming like flying with a low cost budget airline. You book your ticket, you pay the fare only to find that it doesnt really cover everything you expected it to.

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On goes the surcharge to take on baggage (how dare you expect to be able to carry on a suitcase for your week’s holiday?), and in creeps the check-in, passenger handling and credit card handling fees. Suddenly, that low cost flight is looking decidedly expensive.

Shippers and forwarders can empathise. They book their container slot, they pay their freight and off they go… Actually, no they don’t. You want security with that? That’s extra. Oh, and don’t forget the ISPS surcharge. No, it’s different to the security surcharge. Yes, I know that ISPS is essentially about security, but there are two surcharges for it. Deal with it. And do you want container infrastructure with that? Well, that’s extra too. And did I mention that they’re not optional extras; they’re mandatory, so pay up.

Of course, those are only the ones that directly relate to ports. Take your pick from a myriad of dubious surcharges if you want to ship anything, anywhere. First up, there’s the bunker adjustment, and the emergency bunker surcharge. The eagle-eyed among you will have spotted that oil prices are down from the $100 per barrel peak of a year ago and are now nearer to $70 per barrel, but the surcharges remain. In the UK we even have the emergency fuel surcharge as well. Freight forwarders bemoan that the bunker surcharges to ship from the UK now account for double the price of the actual freight.

And what about the peak season surcharge? Yes, that’s still being piled on by shipping lines, which really is a kick in the teeth. ‘Peak’ is a term you don’t expect to see in a global recession; the number of empties enjoying a life on the ocean waves at the moment should surely hammer home that point.

How does all this reflect on ports? Well, the answer is badly if my conversations with those on the front line of booking cargo are anything to go by. Why isn’t port security in the base rate, they ask? And why should we foot the bill for container infrastructure, they add? Both valid questions: ISPS came in five years ago, we can’t keep hanging on to that coat-tail, and being able to move the box to and from the port should be a given, not something that ports charge extra for.

Isn’t it about time that ports tackled this add-on culture, to give the end customer a better experience? All we need is some inward reflection and, of course, co-ordination with the lines, but if that hurdle can be jumped then imagine the benefits if your port was the one that could offer a real flat rate fee – no hidden extras, no ‘terms and conditions apply’, no ‘read the smallprint’ to find out how we’re going to pinch a few more cents from you.

It all boils down to this: ask yourself, do you want to give the premium Emirates or the ‘budget’ Ryanair experience?