KARACHI, Feb 12: Prices of raw material will go up while imported essential commodities like pulses will become costlier by 50 paisa to Re one per kg in case majority of shipping lines start charging terminal congestion surcharge from February 15. Three shipping companies had already imposed the charge from February 1.

Importers of raw material and essential goods have threatened to suspend trading activities in case the shipping lines do not withdraw the unjustified surcharge.

The Karachi Chamber of Commerce and Industry (KCCI) and importers and traders of various goods jointly held a meeting at the KCCI on Tuesday to discuss the issue so that the government could take up the matter with the shipping companies forcing them to refrain from levying terminal congestion surcharge.

KCCI President Shamim Ahmed Shamsi told Dawn that the importers of pulses informed the meeting that the import of pulses would cost 50 paisa to Re one per kg more after implementation of the surcharge.

He said that in a meeting of the National Trade and Transport Facilitation Committee, a standing committee set up by the commerce ministry, was held on February 2 in which shipping lines and terminal operators had agreed to defer imposition of terminal congestion charges for 15 days. However, the participants of the meeting had asked for deferment for 30 days.

The meeting noted that a crisis situation was arising in handling of bulk commodities. Around 63 bulk cargo ships are due to arrive at the Karachi Port between February 20 to 28 to unload, load bulk commodities like wheat, canola, cement and clinker.

Mr Shamsi pointed out that under the agreement for deferment of surcharge for 15 days the shipping lines cannot charge $250 for 20 ft container and $450 for 40 ft container till February 17, but three shipping lines had already started charging, he said.

Importers in the meeting were of the view that when there was no congestion at the Karachi Port and Port Qasim and hence there was no justification for imposing any charges.

Mr Shamsi said that many importers had decided to call a strike against the shipping lines, besides suspending trading activities but they were cooled down on the assurance that the KCCI was taking up the matter with the ministry of ports and shipping and soon the matter would be resolved.

He said in case this issue was not resolved the consumers, who are already paying high prices for essential items, will further suffer and the cost of doing business will go up.

He added that the importers were already paying $300 and $150 under the head of peak season surcharge and fuel surcharge.

Karachi Wholesale Grocers Association Chairman Anis Majeed said that there were reports that one of the shipping lines out of three had decided to withdraw the terminal congestion surcharge. He said other companies should also consider otherwise price hike in essential commodities will hit the consumers.

He said the penalty rates of Rs5,000 for a 20ft container and Rs10,000 for 40ft container for not clearing the containers up to five days should also be removed.