Sep 2009 Financial News

Port blames importers for higher fees

Sep 16, 2009

The inefficiency of the business community in claiming and removing containers from the country’s ports, are to be blamed for the delays and higher costs for consumers. This is the view of Wieger Koornstra, Chief Executive Officer, Port of Port-of-Spain. He estimated that eighty per cent of businesses are inefficient in getting their goods of the port, and they should not be blaming the port for their lack of planning.

During an exclusive interview with the Guardian at the Shipping Association yesterday, Koornstra said the actions of businesses can influence demurrage. The demurrage is cost for delay of return of containers to the shipping line on the ports. “It is possible to avoid demurrage if you coordinate with the shipper, choose the right broker, and promptly submit your paperwork to get the box out of the port early.” He said if you can empty the container quickly after receiving it, within the 12 days deadline, there will be no charge.”
“There will be no demurrage if they do their business right,” Koornstra said.

“What I’m peeved with is that Downtown Merchants Association (Doma), Trinidad and Tobago Manufacturers’ Association (TTMA), the Trinidad and Tobago Chamber of Industry and Commerce are making us out to be the bad ones,” said Koornstra. Ricardo Gonzalez, Terminal Manager, at the Port-of-Spain Port, said there are also frequent occasions where approvals from other agencies can cause delays. These delays can also account for the escalating cost of demurrage. “Demurrage periods are usually between 10 to 12 days. There are other agencies that influence the demurrage for instance the processing of Customs documents which can often take a week,” said Gonzalez. He also added that many times business people are the ones responsible for the hold up of their containers.

“Another thing that can hold up the process is that documents for delivery of containers are not even available by the importers at the time of which to get off the ship. “From our review of the situation only five per cent of the documents are readily available at the time of discharge,” Gonzalez said. “You can’t have your container on the port for weeks and then expect to pay nothing,” added Koornstra. He said many times in the past they have expressed their concerns to the different business associations, yet they continue to complain.

Rhett Chee Ping, president Shipping Association, in the interview added that the business associations are aware of these things but, “what is unfortunate is that members of the business associations are perfectly aware of the foregoing. “The real failure of the real problem continues to be the failure on the part of the business persons to take responsibility for operational efficiency,” Chee Ping said.

Article by: Raphael John Lall
Source: Trinidad Guardian
http://guardian.co.tt/business/business/2009/09/16/port-blames-importers-higher-fees
Date Published: Sept-16-2009