KARACHI, May 30: Members of major conference lines operating in and out of country’s ports have increased freight charges on an average of 25 per cent under GRI (General Rates Increase) and are contemplating to impose around 14 per cent Peak Season Surcharge (PSS) from next month.

Exporters complained that after effecting increase in freight charges under the GRI from the middle of this month, major shipping lines were now considering imposing another cost on export trade of the country under the PSS which will take the burden to around 39 per cent.

According to a notification issued by the shipping lines, the PSS would be effective from June 15 to November 30, 2005 for US inbound cargoes at a rate of $300 for a 20-feet container and $400 for a 40-feet container, including High Cube and Reefer containers. For other ports of loading, the PSS will also be effective on Indian, Pakistani, Bangladeshi and Sri Lankan ports.

The shipping lines have also increased freight charges for all sizes of containers meant for US west coast and US gulf. The rate increase for a 20-feet container is $625, for a 40-feet container $700, and for a 40-feet High Cube container the rate will be $790.

Expressing his utter dismay over the unilateral decision of the shipping lines, Pakistan Hosiery Manufacturers Association (PHMA) Chairman Aslam Karsaz said it would badly affect the export trade of the country.

“Is there any government agency which could monitor freight charges being unilateral increased by the shipping lines from time to time and without any reason?” he asked.

“We were going to get some benefit from the re-imposition of quotas by the United States on textiles and clothing from China, but such costs coming out of the blues are definitely going to dilute such gains which otherwise could have benefited the industry,” he lamented.

Mr Karsaz said the shipping lines were also resorting to exorbitant charges for the documentation, though the government had fixed Rs300 per Bill Lading and Rs100 for revenue tax. “Actually, they charge Rs1,800 and Rs2,500 for the documentation.”

Another burden put on the export trade by the shipping companies, he said, was Qasim Freight Surcharge (QFS) at Rs275 per cubic meter, which was only charged at the Port Qasim and not at the Karachi Port. He said most of the exporters use the Port Qasim for export business.

Despite the fact that the country’s external trade was growing and instead of lowering rates, the shipping companies were resorting to higher freight charges which were not practiced any where in the world, he added.