May 10, 2008	Saturday	Jamadi-ul-Awwal 4, 1429

KARACHI, May 9: The shipping lines have increased freight rates for all European ports by $200 for a 20 feet container and $400 for 40 feet boxes, from Sunday (May 11).

Most of the shipping companies adjust their freight rates every year in the months of May, July and September.

As a result of this increase, the new freight charges to European continent would come between $1600 and $1700 for 20 feet container and in the range of $3100 to $3200 for 40 feet box.

Shipping lines operating from South Asian countries to US continent have already revised their freight rates upward from May 1, 2008, by $300 for 20 feet box and $600 per 40ft container.

The existing freight charges to US continent ports are 1,800 for 20ft box and $3500 for 40ft container.

According to shipping circles, the freight charges have doubled during the last two years owing to rapid rise in world oil prices. The shipping companies have started charging their customers separately on account of fuel charges, currency adjustment charges and local handing charges.

Meanwhile, exporters have taken strong exception to this development and feel that this would further burden their export trade which was already under great stress.

“Undoubtedly oil adjustment at present is one of the major factor for rising freight charges but the way shipping companies have rapidly been increasing rates is unjust and damaging to trade,” said an exporter, adding “it is shocking that shipping companies’ notice for general rate increase is for a short period as it is valid up to end of this month.”

He further stated that this would mean that exactly after 20 days, there would be a further increase in freight charges.

Besides, a general rate increase in freight, the shipping companies frequently resort to rise in fuel, currency and local handling charges and this keeps export trade exposed to unexpected cost increases, Rafiq Godil, chairman, Pakistan Sweater Exporters Association, said.