KARACHI: Port users are complaining that shipping lines operating at the Karachi port have continued to impose congestion surcharge despite normal traffic flow.

Naseem Ashkar, former senior vice-president of the Karachi Customs Agents Association, argued that shipping lines should seek such charges from the port while importers should only pay the cost and freight (c&f) charges.

Nisar Chandna, former president of the Karachi Chamber of Commerce and Industry, said the shipping companies on Friday charged $300 for a 40-foot container and $150 for a 20-foot container as port congestion surcharge.

He said congestion was witnessed at the Karachi International Container Terminal in November and December due to malfunctioning of equipment, and at the Pakistan International Container Terminal when Pakistan-Afghan border was sealed.

However, there was no such situation at present, he said.

He said the surcharge was being used as an excuse to increase freight charges. “If shipping lines wants to increase freight charges they should enter into negotiations with trade bodies and stop using such tactics,” he said.

In order to resolve the surcharge issue, the Karachi chamber and Karachi Port Trust (KPT) called separate meetings of all the stakeholders, including local representative bodies of shipping lines, during the week.

In a meeting held on Wednesday, KPT officials tried to satisfy shipping agents that presently there was no congestion at the port’s terminal, and if such situation arose the port would cooperate and give extra space from its own area.

However, the shipping agents argued that they were not empowered to take any decision in this regard and that they would put up the issue before their companies.

The Pakistan Ship Agents Association, a representative body of shipping lines, did not attend the KPT meeting.

A spokesman of the association refused to give pricing details, saying the Competition Commi­ssion of Pakistan barred companies from openly discussing such rates.

All Pakistan Ship Agents Association chairman Asim Siddiqui couldn’t be reached for comment.

In a separate meeting on Saturday, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said the issue of the port congestion surcharge would be resolved amicably.

Published in Dawn, April 1st, 2017