International firms to cut congestion fees on containers heading to Aqaba Port from Far East

Three major international shipping firms will next week cut the congestion fees imposed on containers heading to Aqaba Port from the Far East.  

“PIL, APL and Evergreen decided to reduce as of Aug. 15 the congestion surcharges by 33.5 per cent from $300 to $200 on each 20-feet container and from $600 to $400 on every 40-feet container,” Jordan Shipping Agents Association (JSAA) President, Rudain Kawar, told The Jordan Times.  

The three firms control about 75 per cent of the traffic between Aqaba Port and the Far East.  

The move, according to Kawar, will reduce the cost of cargoes on importers and consequently reduce prices in the local market.  

The JSAA chief expected the remaining five to six shipping lines operating between Aqaba Port and the Far East to take a similar step.  

Last month, some global shipping firms lowered by 50 per cent the congestion fees imposed on cargoes heading to the southern port of Aqaba from countries on the Mediterranean Sea.  

According to the companies' decision, congestion fees were lowered from $300 to $150 on each 20-feet container and from $600 to $300 on every 40-feet container, JSAA Executive Manager Mohammad Dalabih added.  

Other surcharges, which respectively stand at $450 and $900 on each 20-feet and 40-feet container heading to Aqaba from the US and West European markets, remain unchanged.  

A year ago, international shipping lines serving Aqaba Port imposed surcharges on containers bound for Aqaba after their ships started facing delays and consequently increased operational costs. (menareport.com)

© 2004 Mena Report (www.menareport.com)