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Container Carrier T.S. Lines has confirmed that it has decided not to levy an Emergency Bunker Surcharge (EBS), which was due to be collected from consignees in Hong Kong and Taiwan following the recent drop in bunker prices.

In a letter to the Hong Kong Transport and Housing Bureau, Alfred Lee, Assistant General Manager of T.S. Lines said that the company had noted a slight decrease in the price of marine fuel and hoped that the circumstances would gradually improve.

Lee said that the company had carried out a "full evaluation" of the current situation and decided to adjust its freight structure and not impose the Emergency Bunker Surcharge it had originally intended to charge consignees in Hong Kong and Taiwan.

T.S. Lines is the latest of the original eight shipping lines to make a u-turn over the Emergency Bunker Surcharge following fierce criticism from the Hong Kong Shippers' Council in July.

Commenting last month on the surcharge, Willy Lin, Chairman of The Hong Kong Shippers’ Council said “There is no way that Hong Kong and South China shippers will accept this requirement of collecting the new charge from them only. Bunker and fuel surcharges are always part of freight payment and should be collected from the party that pays freight."

Orient Overseas Container Line (OOCL) was the first shipping firm to make a u-turn by declaring that the party that pays the freight would now be required to pay a levy of USD60 per 20' and USD 120 per 40' from 2nd August 2008.

Regional Container Lines (RCL) then confirmed on July 18th that it would withdraw from collecting the EBS.

On July 28th, Evergreen Marine (Hong Kong) Ltd. stated in a letter to the Hong Kong Transport and Housing Bureau that it had revised its surcharge and from 1st August 2008 would collect the EBS from the party that pays the ocean freight.

Meanwhile, Cheng Lie Navigation (HK) Co Ltd declared on 29th July that it had not imposed the EBS. Director and General Manager, Agnes Chong, said the company had only collected HK$440 for one shipment from Taichung to Hong Kong due to a clerical error and had refunded the payment to the party concerned.

Of the three remaining companies, the Hong Kong Shippers' Council said in a circular earlier this month that the following EBS charges would be collected from consignees in Hong Kong and South China.

Kanway Shipping Ltd. HK440 / RMB400 per 20' and HKD880 / RMB800 per 40'

Wan Hai Lines (HK) Ltd. HK440 / RMB400 per 20' and HKD880 / RMB800 per 40'

Yang Ming Line (HK) Ltd. HK440 / RMB400 per 20' and HKD880 / RMB800 per 40'