In Dubai, a pivotal change in the settlement of terminal handling charges at Jebel Ali Port is set to take effect from November 1, emphasizing the exclusive use of the Trade Portal for these transactions. This move is part of a broader initiative to enhance transparency within the local shipping and logistics sector. The significance of this transition is underscored by the fact that, as of November 1, local shippers are mandated to settle all terminal handling charges exclusively through the Dubai Trade Portal.
The operational framework of the new system involves logistics companies in Dubai directly billing their clients. Simultaneously, the local port operator will issue separate invoices covering the range of services provided, including terminal handling, truck loading, and unloading charges. Haris Shaikh, the Managing Director at Gallop Shipping, a Dubai-based company, elucidated that these payments will be collected directly via the Dubai Trade Platform. Notably, this process is in accordance with the Dubai Maritime Authority ruling, with the predominant goal of fostering transparency and mitigating additional charges.
According to Shaikh, the transparency achieved through this process will contribute to a reduction in other additional charges. He remarked on Dubai’s historical role as a trade hub and expressed his optimism that this new approach to transparency in local sea container charges will bolster the city’s competitiveness on the global stage.
The initiative prompted a deadline for the submission of local charges, with corrections provided by the authorities. Usman Rehman, the Managing Director of Time World Freight, acknowledged the impact of the Maritime Authority directive, noting that while there might not have been a significant drop in charges, there was a noticeable standardization of charges across the Dubai market.
There will now be new charges for terminal handling, with rates set at Dh700 for a 20-feet container and Dh1,100 for a 40-feet container. Additionally, Truck Loading and unloading Charges are established at Dh314, with the stipulation that these charges must be paid directly through the Trade Portal. In comparison, the earlier rates for terminal handling charges were Dh1,090 for a 20-feet container and Dh1,520 for a 40-feet container, and these were paid to the shipping line.
The underlying intention, as suggested by industry sources, is to ensure the continuous availability of the most competitive rates. Once standardized, clients have the autonomy to choose the logistics company that best aligns with their needs.
The Dubai Maritime Authority’s proactive approach is recognized for removing ambiguities in how local sea container charges were billed. This move is acknowledged to be working well, delivering the anticipated results, and further contributing to the ongoing efforts to streamline and regulate the industry.
In the context of potential cost fluctuations, service providers are granted the flexibility to increase sea container rates strictly to reflect new or increased costs issued by the port operator or government. According to industry experts, this approach provides customers and freight forwarders with the opportunity to engage in contract-based cargo movement, allowing for a degree of control over any cost fluctuations.
Considering the surge in global container shipping rates since 2020, induced by disruptions caused by the Covid-19 pandemic, the Dubai Maritime Authority’s initiative is perceived as a timely and effective measure. Usman Rehman emphasized that the move towards uniformity and transparency in local sea container charges will mitigate any tendency to over-price, especially given the dependency on demand fluctuations at the port of origin.
To conclude, Dubai’s proactive steps to regulate, standardize, and bring transparency to local sea container charges signify a substantial leap toward creating a fair and competitive environment in the shipping and logistics sector.