Ground handling firm Sats defers new air cargo fee a second time to Aug 1 amid continued pushback

The Straits Times04-26

SINGAPORE - A new four-cent fee that ground handling firm Sats plans to impose on every kilogram of inbound air cargo it processes here has been deferred for a second time until Aug 1. Originally ...

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A new four-cent fee that ground handling firm Sats plans to impose on every kilogram of inbound air cargo it processes here has been deferred for a second time until Aug 1. \nOriginally ...</p>\n\n<a href=\"https://www.straitstimes.com/singapore/transport/ground-handling-firm-sats-defers-new-air-cargo-fee-a-second-time-to-aug-1-amid-continued-pushback\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0082770016.USD","symbol_name":"HSBC GIF ASIA EX JAPAN SMALLER CO. \"AD\" INC","start_time":0,"source_url":"https://www.straitstimes.com/singapore/transport/ground-handling-firm-sats-defers-new-air-cargo-fee-a-second-time-to-aug-1-amid-continued-pushback","article_id":"2430789295","we_media_id":null,"thumbnails":[],"rights":{"source":"straits_highlight","url":"https://www.straitstimes.com/singapore/transport/ground-handling-firm-sats-defers-new-air-cargo-fee-a-second-time-to-aug-1-amid-continued-pushback","rn_cache_url":null,"customStyle":"","selectors":"body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2430789295","pubTimestamp":1714095900,"sourceInfo":{"source_id":"straits_highlight","name":"Straits Times"},"weMediaInfo":null,"summary":"SINGAPORE - A new four-cent fee that ground handling firm Sats plans to impose on every kilogram of inbound air cargo it processes here has been deferred for a second time until Aug 1.Originally meant to kick in from April 15, the new charge had been delayed by a month to May 15 after industry players pushed back against the move, which they say will add to inflation and introduce inefficiency in the supply chain.Sats announced the second deferral in a circular issued to the industry on April 26.The ground handler also said it has renamed its new fee, which will now be called a “cargo terminal collection fee” instead of an “import handling fee” to better reflect the work required for handling, processing and securing inbound cargo.Another attendee, a logistics manager for an international company, said he understands why Sats needs to increase its rates, but felt it should be incorporated into the overall freight cost that airlines pay rather than charged as a separate fee.","collect":0,"end_time":0,"defaultTopTitle":"straitstimes.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0082770016.USD":"HSBC GIF ASIA EX JAPAN SMALLER CO. \"AD\" INC","BK6519":"运输股","S58.SI":"新翔集团有限公司","BK6084":"机场服务","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD"},"translate_title":"在持续的阻力下，地勤公司Sats第二次将新的空运费推迟到8月1日","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"S58.SI":1},"content_text":"SINGAPORE - A new four-cent fee that ground handling firm Sats plans to impose on every kilogram of inbound air cargo it processes here has been deferred for a second time until Aug 1. \nOriginally meant to kick in from April 15, the new charge had been delayed by a month to May 15 after industry players pushed back against the move, which they say will add to inflation and introduce inefficiency in the supply chain.\nSats announced the second deferral in a circular issued to the industry on April 26.\n\n\n\n“We have considered your suggestions, and will agree to requests raised by the industry for more time to make the necessary arrangements to administer the new fee,” said Sats in the circular.\nThe ground handler also said it has renamed its new fee, which will now be called a “cargo terminal collection fee” instead of an “import handling fee” to better reflect the work required for handling, processing and securing inbound cargo.\nThe decision to delay the new fee by another 2.5 months came after Sats held a two-hour, closed-door townhall meeting on April 19 at Downtown East with about 90 representatives from the air cargo industry to address their concerns.\n\n\n\n\nAttendees told The Straits Times the general mood was one of frustration and resignation. Those interviewed noted that the new fee would increase administrative expenses and bemoaned the higher cost, which they say may ultimately be passed on to consumers.\n\nThey also said that the higher costs could impact the competitiveness of Changi Airport as an air cargo hub and questioned why airlines – the direct customers of cargo terminal operators like Sats – are not being made to shoulder the burden.\nIn a statement to ST after the townhall, Sats pledged that it would not impose any other new charges or increase existing fees for freight forwarders in Singapore until March 31, 2025. It also reiterated an earlier promise to not raise the new four-cent fee for at least two years.\nWhile it is common practice to charge terminal or processing fees on inbound air cargo, and such fees are levied in most major airports including Kuala Lumpur, Bangkok and Hong Kong, it is the first time that a ground handler in Singapore is introducing it.\n\n\n\nIndustry players said given Sats’ dominant position in the ground handling sector here, they fear that its only other competitor in Singapore - dnata - will follow suit and impose a similar fee in future.\nWhen asked about this, dnata declined to comment.\nOne industry insider who was at the April 19 meeting noted the knock-on effects that the additional fee will have on some clients, such as those dealing in perishables. One example is the meat that is flown into Singapore for the annual Hari Raya Haji ritual of korban.\nAnother attendee, a logistics manager for an international company, said he understands why Sats needs to increase its rates, but felt it should be incorporated into the overall freight cost that airlines pay rather than charged as a separate fee.\nHe added: “As a shipper, the cost will eventually fall back to us. But I think it is not going to make the whole ecosystem efficient... What makes Singapore unique? What’s going to make us a competitive hub? We will be no different from Thailand and Malaysia.”\nBoth declined to be named as they were not authorised to speak to the media.\n\n\n\n\n\nMore On This Topic\n\n \n\nGround handling firm Sats delays roll-out of new cargo handling fee after industry pushback  \n\n\n\n \n\nSats says it ‘remains on track to restoring profitability’ after 3 straight years of losses\n\n\n\n\n\n\n\n\n\nSats told ST that the primary objective of the new fee is to partially cover its rising operating costs, which have increased significantly post-Covid-19 due to inflationary pressures.\nThis is especially so for its manpower expenses, which Sats Gateway Services chief executive Bob Chi said is crucial for hiring and retaining workers in hard-to-recruit positions that require shift work.\n“The financial sustainability of our cargo operations in Singapore is crucial to our ability to support air hub operations, as we process more cargo and are held to ever higher customer expectations amid global competition,” he added.\nSats said its business costs have gone up by as much as 30 per cent, and continue to rise. It noted, for example, that its manpower costs are up 25 per cent due to the acute labour shortage, while security costs have risen by as much as 50 per cent.\nMr Chi said Sats intentionally kept its new fee low to minimise the impact on the air cargo sector and the competitiveness of Singapore’s air hub. He also noted that a charge of four cents per kilogram is the lowest among regional airports.\nHe added that Sats is cognisant of the fact that inflationary pressures have driven up costs for all parties in the air cargo industry. Hence, the company’s approach is to get everyone, including airlines, to play a part in defraying these cost increases.\nST understands that for airlines, this will be done via contract negotiations, which are ongoing.\n\n\n\n\n\nMore On This Topic\n\n \n\nAfter three challenging years, Sats is starting to soar again \n\n\n\n \n\nSats opens its largest kitchen for ready-to-eat food outside Singapore in Bengaluru","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2430789295"}