December 14, 2001	Friday	Ramazan 28, 1422

KARACHI, Dec 13: The shipping freight rates have been slashed by as much as 40 per cent by foreign shipping lines after the drop in Pakistani sea-borne trade cargo since September 11.

Shipping sources told APP here on Thursday that the freight rate of 40-feet container has dropped from $2,200 to $1,400 per container while freight of 20-feet container has declined from $1,100 to $700 per container.

An executive of foreign shipping line said that Pakistani exports had been badly affected due to cancellation of orders from foreign buyers after September 11, particularly from the United States and the European Union, after imposition of war risk premium on sea-cargo.

He said that Pakistani export consignments particularly of textile items are stuck up in the US, while the EU had not yet removed duty on Pakistani exports nor it allowed 15 per cent increase in textile quota items.

He said that US and European banks were not establishing letter of credit (LCs) for the import of products from Pakistan.

He pointed out that during the last three months, Pakistani import and export cargo had declined by at least 18 to 20 per cent after the terrorists attacks on the US.

According to the Federal Bureau of Statistics, the export of carpets declined by 37 per cent, textile items 14 per cent, seafood by 23 per cent, leather 15 per cent, chemicals and pharmaceutical 22 per cent in November 2001 compared to October 2001.

He said that the decline in trade cargo had created a surplus space in the vessels and foreign shipping lines were booking cargo at lower freight to fill up space.

A local agent of a foreign shipping line said that 26 conference shipping lines had slashed their freight rate by at least 40 per cent for Pakistani cargo and only Pakistan National Shipping Corporation (PNSC) and China Line were still charging the old rates.

He, however, made it clear that the frequency of ships has not been reduced due to fall in trade cargo from Pakistan.

“All the scheduled ships are touching Pakistan as usual as they want to lift and discharge all trade cargo to and from Pakistan before the end of New Year vacations,” he observed.

He was of the view that decline in freight charges would benefit Pakistani exports, making them competitive in the international market.

He said the recent decline in freight charges would offset the impact of war risk surcharge on Pakistan cargo.—APP