KARACHI, Nov 21: Shipping lines and their local agents are charging ten times more than the actual war risk premium (WRP), making the country’s exports uncompetitive, exporters here said on Wednesday.

They deplored that exporters are being forced to pay WRP at exorbitant rates of $100 per TEU for Middle East and $200 for Europe and US coasts.

“We are ready to accept their justified expenses or costs, which the shipping lines may have incurred and add the same into their freight charges, but the exorbitant surcharge being passed on to the shippers and importers under WRP was not acceptable,” said chairman, Rice Exporters Association of Pakistan (REAP), Abdul Rahim Janoo, in a complaint lodged with Minister for Communications, Ports and Shipping, Javed Ashraf against the foreign shipping lines and their local agents.

In support of his argument, the REAP chief said that as per insurance companies statement, the actual war risk surcharge for a vessel of $12.75 million shall be more or less $8 to $10 per TEU.

Pakistan Hosiery Manufacturers Association (PHMA) chairman Mohammad Kamran Chandna said that the shipping lines have doubled their terminal handling charging (THC) from Rs16,000 to Rs32,000 per TEU container even in cases there is a single day delay in bringing export consignments into port area.

He said: “Increase in charges by shipping companies are crippling our exports as well as imports. If on one hand, our products in the world market have become uncompetitive, on the other hand, prices of consumer goods in the local market have also gone up.”

Kamran said there was no authority to keep a check on the activity of shipping lines and their local agents, who were “destroying our economy by imposing exorbitant charges on different account.”

He urged the minister for communications to immediately intervene and save country’s $20 billion external trade, which had been suffering since the Sept 11 incident.

Convener of Small and Medium Sized Rice Exporters Zulfikar Thaver said “we are forced to pay $100 and $200 per container on all shipments that is a burden on us as foreign buyers refuse to pay this amount.”

He said that the actual war risk premium was only $10 and $20, which is the premium of the insurers, but the shipping lines and their local agents are charging ten times more, causing monetary losses to the shippers and exporters.