The Guangdong Association of Foreign Economy and Trade Enterprises (GDFETEA), the name of the Guangzhou-based shippers association, has called on shippers, traders and forwarders to refuse to pay the 340 per cent increase in terminal handling charges (THC) imposed by international shipping organisations, Xinhua reported.

The shippers' association also asked members to collect evidence that proves shipping companies' are imposing THCs and said its members retained the right to withdraw the previous THC payments.



At a meeting called "Seminar of Strategies on the THC", association president Cai Gaosheng said shippers used to rely on the government to fight against THC, but today industrial associations must play more a important role.



Mr Cai said the main reason shipping companies gain the upper hand in such disputes is that shipping companies are individually large in size but collectively small so they can easily reach agreements while shippers are collectively large but individually small, making joint action harder.



Mr Cai said shippers should unite and reach consensus to form an effective counterpoint to shipping companies.



Quasi-conferences, including Intra-Asia Discussion Agreement (IADA), Informal South Asia Agreement (ISAA), Informal Rate Agreement (IRA), the Intra-Asia Discussion Agreement (IADA), Informal Rate Agreement (IRA) and Informal Red Sea Agreement (IRSA) are raising THCs for import and export cargo to and from Guangdong, Guangxi, Hainan and Yunnan by 340 per cent, the shippers say.



The Ministry of Communications has said that agreements by ISAA and IRSA involving Chinese ports were in vain and their agreements on raising THC in South China starting from mid-May must be cancelled.