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Hong Kong's Container Truckers: The Mid-stream Fee Dispute                                                                                                                                                                                                            
Product Ref: 03/180C Company: N/A

Product Type: Case Industry: Transportation

Related Product(s): Teaching Note
In November 2000, the eight-member Hong Kong mid-stream Operators Association (HKMOA), which controlled 90 per cent of the mid-stream container handling business in Hong Kong, announced that they would charge shippers an extra fee. When the shippers refused to pay that fee, the container truck drivers, who delivered the containers to the mid-stream depots, were asked to pay it for the shippers first and then claim it back from the shippers. The truckers promptly refused. A series of industrial actions ensued, and the Government, shippers, and liners were involved in subsequent negotiations. The rounds of tussles between the HKMOA and the truckers lasted into Jun 2001. Eventually, the HKMOA won, the truckers had to pay the mid-stream fee, and in many cases could not recoup it from the shippers. WHy did the truckers become the victims of the HKMOA? Why could the mid-stream operators win? What could public policy -makers do to prevent similar disputes from happening again? What could the truck drivers, who in many cases were self-employed, do to protect themselves from more new charges in the future?
Functional Area : Economics & Business Policy

Issues: Container trucking, oligopoly, mid-stream operation, industrial action, buyer-supplier relationships
Length: Text: 10 pages
Exhibits: 1 pages
Country: Hong Kong SAR

Pub. Year: 2003 Level of Difficulty: 1
This product type is available in the following language(s):      English   Simplified Chinese
Related Information: N/A
This is a part of The Trade & Industry Department SME Case Series
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