In November 2000, the eight members of Hong Kong Mid-Stream Operators Association (HKMOA), which controlled 90% of the mid-stream container throughput in Hong Kong announced that it would charge shippers for an additional fee. If the shippers refused to pay, asked the HKMOA the container truck drivers who delivered the container to the mid-stream deposits to pay for it and then claim it back. Shippers from the The truck driver refused. A series of industrial actions followed, and the government sh … Read more »

In November 2000, the eight members of Hong Kong Mid-Stream Operators Association (HKMOA), which controlled 90% of the mid-stream container throughput in Hong Kong announced that it would charge shippers for an additional fee. If the shippers refused to pay, asked the HKMOA the container truck drivers who delivered the container to the mid-stream deposits to pay for it and then claim it back. Shippers from the The truck driver refused. A series of industrial actions followed, and the government, shippers and liners were involved in subsequent negotiations. The rounds of scuffles between the HKMOA and the truck driver took in the year 2001. Finally, the HKMOA won: The truck driver had to pay the middle of the stream, although in many cases it could not get back from the shipper. Why do truck drivers are the victims of HKMOA? How could the mid-stream operators to win? What policy makers could do to prevent similar confrontations in the future? What could be the truck drivers who were in many cases self-employed, do to protect themselves from more new charges in the future?
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from
Michael J. Enright,
Vincent Mak
Source: University of Hong Kong
11 pages.
Release Date: 11 December 2003. Prod #: HKU297-PDF-ENG
Hong Kong Container Truckers: The Mid-Stream Fee Dispute HBR case solution

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