Thc Empirical Research, The Impact On Freight

Terminal Handling Charge (THC) came into being with the development of container transportation industry.It has been the bone of contention since its appearance from the 1980's.Before the introduction of Terminal Handling Charges (THC),traditional freight rates included both ocean freight charges and terminal charges at ports.Since the introduction of THC 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 THC. Although both THC 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.So it can be seen that THC is a long-term and stable income to shipping lines,while ocean freight can float with the condition of market demanding and supplying.THC began to be collected in China in Jan.1~st 2002 by those shipping lines that belong to such shipping conferences as TSA,ADA,FEFC,AWRA etc.Then other shipping lines followed.This time shipping lines presented record-breaking solidarity.This action aroused a great disturbance in China.Shippers argued with shipping lines drastically as to the collection of THC ever since.Every party has his own point of view.THC has been collected for more than three years since the year of 2002 and no agreement has been reached accepted by all parties.In this article,the author wants to discuss this problem through several sections,hoping to draw some conclusions.The first section briefly introduces the present conflict on THC and introduces researches abroad concerning with it.Then problem can be proposed from it and the author claims the aim of this thesis.In the second section, the author describes the conception of THC and the scope it covers.The author also explains the definition of basic freight,additive charges,ocean freight,loading and unloading charges,compares them with THC,examines THC from the point of law.The purpose is to get the relationshipbetween THC and freight rate.The conclusion is that THC is one part of freight rate.The third section recommends the history and development of THC.The author provides some data to describe the present condition in different countries,and narrates how they deal with THC,then take Hongkong as an example to tell the developing trend of THC.The fourth section introduces the condition of THC in China,their own standpoints and conflicts.The fifth section focuses on four aspects to disclose the reasons of collecting THC.Firstly the author discusses the basis of price-setting system from two points ,one is transportation cost,the other is competing condition of the international marine market.The purpose is to conclude that it is necessary to collect THC.Secondly the author sees through the developing trend of container transportation in China to tell that THC is the result of market demanding and supplying.Thirdly from the origin,development and historical position of conferences the usage of conferences in this conflict can be seen.Lastly the author describes the economic relationship between shippers and shipping lines and the advantages and disadvantages to the two parties.The sixth section analyzes the impact of THC on export of China,shippers,shipping lines,ports as well as govemment.In the aspect of analyzing the impact on export of China,the author collects data of thruput in Qingdao and in China and the loading-unloading charges in recent fourteen years.Through building a regress model, the result is that thruput has nothing to do with the collection of THC,which provides strong support to the conclusion of this article.When talking about the impact on government,the author focuses on international convention,conversion of the function of government and reinforce our law system.Is is impending to transit the function of government, meet the international conventions as early as possible,develop the guilds and consummate marine law.In the seventh section conclusions can be drawn. In practice with the development of container transportation,traditional ocean freight system can not meet new characteristics.The introduction of THC remedies this deficiency in somedegree.At present the ocean market is getting more and more competitive which makes shipping lines adopt flexible pricing-setting strategy.This is a new condition of ocean market and China is also joining with the international tradition.Essentially the conflict of THC is conflict among different lines.China has joined in WTO which demands transition of our government.Market should be the factor to decide the interest distribution among different lines.The last section prospects changes of THC in the future.In this part taking Hongkong as an example,the author prospects that the rate will be different in different ports in China and will go on rising.