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HAFFA hails decision to reinstate cargo fuel surcharge mechanism
THE Hongkong Association of Freight Forwarding and Logistics Limited (HAFFA) has welcomed the government's decision to reinstate the Cargo Fuel Surcharge (CFS) mechanism with effect from April 1 2017 until December 31 2019.
In a statement, the HAFFA said it played a significant role in urging the Civil Aviation Authority (CAD) to reinstate the mechanism after it was removed on April 1 last year, impressing upon the authorities the vital importance of maintaining an equitable, clear and transparent system for the good of Hong Kong's cargo industry.
HAFFA chairman, Mr. Cliff Sullivan, said: "HAFFA fully supports the decision by the CAD to reinstate the CFS mechanism. We believe it is vital to maintain an equitable, clear and transparent CFS mechanism for the well-being of Hong Kong's cargo industry, and are committed to working with the Government to improve its structure in the long term."
For many years, the CFS mechanism has provided a regulated fuel index-based price adjustment system which enabled the industry to prepare and make precise provisions for fluctuations in fuel prices. The unilateral removal of the CFS mechanism in April 2016, while intended to enhance Hong Kong's competitiveness, left the industry without a regulated system to accommodate fluctuations in oil prices.
"To cope with the potential of high oil prices beyond 2019, when the current CFS mechanism is due to once again cease, HAFFA is concerned that a satisfactory replacement is established to take its place in advance. Before a decision is made on whether fuel surcharges are to be de-regulated in the long run, HAFFA will continue to work with the Government on future consultations in order to seek satisfactory solutions to this complex issue," the association said.
In a statement, the HAFFA said it played a significant role in urging the Civil Aviation Authority (CAD) to reinstate the mechanism after it was removed on April 1 last year, impressing upon the authorities the vital importance of maintaining an equitable, clear and transparent system for the good of Hong Kong's cargo industry.
HAFFA chairman, Mr. Cliff Sullivan, said: "HAFFA fully supports the decision by the CAD to reinstate the CFS mechanism. We believe it is vital to maintain an equitable, clear and transparent CFS mechanism for the well-being of Hong Kong's cargo industry, and are committed to working with the Government to improve its structure in the long term."
For many years, the CFS mechanism has provided a regulated fuel index-based price adjustment system which enabled the industry to prepare and make precise provisions for fluctuations in fuel prices. The unilateral removal of the CFS mechanism in April 2016, while intended to enhance Hong Kong's competitiveness, left the industry without a regulated system to accommodate fluctuations in oil prices.
"To cope with the potential of high oil prices beyond 2019, when the current CFS mechanism is due to once again cease, HAFFA is concerned that a satisfactory replacement is established to take its place in advance. Before a decision is made on whether fuel surcharges are to be de-regulated in the long run, HAFFA will continue to work with the Government on future consultations in order to seek satisfactory solutions to this complex issue," the association said.
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