KARACHI: International logistics company Maersk told its Pakistani clients on Friday it’s going to “temporarily suspend” the acceptance of C&F bookings — contracts in which freight is prepaid — with effect from Aug 15.
A C&F contract covers both cost and freight as the seller is required to arrange for the carriage of goods by sea to a port of destination.
Maersk blamed the “restrictions/limitations” imposed by the State Bank of Pakistan (SBP) on outward freight remittances for putting the freight services provider in a “very difficult situation”.
The company said it’ll keep the acceptance of C&F bookings suspended until remittances restrictions are either eased or lifted by the SBP.
The company noted that it’ll continue accepting export bookings on the basis of FOB (freight collect), which stipulates that the buyer owns the products en route to its warehouse and must pay any delivery charges. The SBP’s move is apparently aimed at restricting the outflow of dollars. The quick depletion of the dollars has brought the local currency under pressure, leaving the country scrambling for greenback supplies from international lenders and friendly countries.
Published in Dawn, August 13th, 2022