KARACHI, June 30: India-Pakistan-Bangladesh-Ceylon Conference (IPBCC) member shipping lines have enhanced freight charges by 20 per cent for all cargo destined to Europe.

The freight-hike has been made by the IPBCC member lines under rate restoration and on the plea that the member shipping lines are faced with a considerable increase in costs, delays and congestion at calling ports.

In a notice to trade, the IPBCC has stated that the freight hike for 20 feet container would be $200 and for 40ft box $400 from July 1.

This means there would be 19 to 20 per cent increase in charges against the current freight rates of $1,050 for 20ft container and $2,000 for 40ft box.

The IPBCC further stated

that ocean rates in the westbound (Europe) trade have been in serious decline over the past two to three years and member lines are no longer able to accept such uneconomic and unsustainable rate levels.

The IPBCC lines have also warned that as per their business plan, members will keep ancillary tariff items, such as special equipment surcharges under constant review.

The shipping lines increased freight charges as recently as in the first week of May, but once again resorted to increase the freight rates, which has upset export trade, lamented Pakistan Bedwear Exporters Association (PBEA) chairman Shabir Ahmed.

Trade and industry has been complaining for a long time that often they have to face shut-out for their containers owing to cut-off date fixed by the shipping lines. The shipping lines run only one weekly service to country’s ports, he explained, adding each vessel sails out after two days from the cut-off date.

Presently only three shipping companies — MacAndrews, Maersk and MSC lines — operate between Pakistan and European continent, and in case any weekly shipping schedule is missed, exporters either have to wait for the next vessel or opt for air freight export cargo which again puts extra cost.

Masood Naqi, chairman, Korangi Association of Trade and Industry (KATI), urged the government to encourage more shipping lines to call at country’s ports to create competition which would help bring down freight charges.

He, however, said it would be appropriate if the government first asks the terminal operators to reduce their charges because only then more shipping companies would like to extend their service to our ports.

Citing an example, he said in case of shut-out of containers, an exporter who has to catch the next shipping schedule, would require to go for inter-stuffing of cargo from one box to another. For this act, exporter will have to pay charges of Rs30,000 to terminal operator despite the fact that the entire cost of this exercise and of labour is paid by the exporter himself.