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Monetary Cost Analysis

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Monetary cost is one of the identifiable factor affecting port competitiveness. A cheap port can generate attractiveness for shipper choosing the port. Lirn et al. (2004) conducted a study to support monetary costs is the most significant factor in port selection. The study applied Analytical Hierarchy Process (AHP) to capture the performance of ports for global shipping and the selection criteria including port administration, geographical location, terminal cost and port management. Referring to AHP result, it summarized cost consideration is crucial criteria to select port for shipping operation.
Terminal operators are significant facilitators of global trade. The operators help to shape up the comparative advantages and potential competitiveness …show more content…

It is introduced since 1990 In term of Free-on-board container, the shipper is responsible for paying the charges from the starting port, whereas the consignee is responsible for paying the charges on the destination port. Terminal handling charges are advised by the international liner conferences or agreements. These international liner conferences are group by shipping lines which aim to secure the key trading routes. Their goal is also to steady the freight rates, THC and other charges. The practice of charging THC is common throughout Asia as much of the rest of the …show more content…

Since 2001, THC in China port trended to charge in monopolistic which treated as violating the competition law in China. Shipping lines must abide by the charges and freight rates filling requirements under the “International Maritime Regulations” Therefore, The Ministry of Transport investigated the shipping liners which involved in the THC other surcharges beyond law enforcement in 2015. In March of 2017, eighteen container shipping liners have offered to cut down the terminal handing charges by thirteen to twenty- two percent in China, according to National Development and Reform Commission (NDRC). With this THC deduction, the cost burden on shippers can be reduced by about 4.6 billion yuan per year.
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