The impact of terminal handling charges on overall shipping charges : an empirical study
Document Type
Journal article
Source Publication
Transportation research PART a-policy and practice
Publication Date
10-1-2003
Volume
37
Issue
8
First Page
703
Last Page
716
Publisher
Pergamon Press
Keywords
Transportation, Shipping, Port, Terminal handling charges
Abstract
Before the introduction of terminal handling charges (THCs), traditional freight rates included both ocean freight charges and terminal charges at ports. Since the introduction of THCs in 1991, the freight rate has become a “port-to-port” charge that covers only the sea leg, while the on-shore costs of using the container terminals are charged separately as THCs. Although both THCs and freight rates are collectively set by conferences, in this study we argue that the former are easier to enforce because they are invariant to other attributes such as haulage distance, inland transport services and types of commodity being shipped. This argument is consistent with the empirical findings from this study that suggest the separation of ocean freight rates from terminal charges has increased the overall shipping charges. In addition, we find that THCs affect the Hong Kong container handling industry by lowering its throughput.
DOI
10.1016/S0965-8564(03)00026-0
Print ISSN
09658564
E-ISSN
18792375
Funding Information
The work described in this paper was substantially supported by a grant from the Research Grant Council of the Hong Kong Special Administrative Region, China (Project No.: HKUST6211/97H).
Publisher Statement
Copyright © 2003 Elsevier Science Ltd. All rights reserved.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Fung, M. K., Cheng, L. K., & Qiu, L. D. (2003). The impact of terminal handling charges on overall shipping charges: An empirical study. Transportation research PART a-policy and practice, 37(8), 703-716. doi: 10.1016/S0965-8564(03)00026-0