SINGAPORE, Nov 26: Commodities trade is slowly emerging from a harsh period as shipment schedules return to normal after an easing of war risk premiums, Food and Agriculture Minister Khair Mohammad Junejo said on Monday.

Pakistani importers and exporters, who had a tough time in finding ships after the United States launched retaliatory strikes in Afghanistan, were gradually getting into new contracts after staying out of the market for some time, he said.

“On the war risk cost front, I believe the situation is gradually easing,” Junejo told Reuters in a telephone interview from Islamabad. “I don’t think there is any risk for any kind of war risk premiums to be imposed.”

Last month, three international shipping lines — Hyundai Merchant Marine Co Ltd and Wanhai Line of Korea, together with Hong Kong-based Orient Overseas Container Lines — suspended operations to Pakistan to assess war-risk insurance charges.

But they decided to resume Pakistan operations a week later.

After the retaliatory strikes started, many traders stayed away from fresh deals on fears that they won’t be able to meet their commitments on time as shipowners were reluctant to charter their vessels. Freight rates had risen by $100 per container.

“But now, I don’t think there is any kind of reluctance among shipowners to send their ships,” Junejo said. “Premiums have eased although I can’t give you a figure. Different firms are charging different rates, depending on the commodities.”

Trade officials say the shipping situation in Pakistan started to improve after the government urged insurance firms not to levy war risk surcharges and instead offered to provide guarantees for the vessels.

Junejo said many grain and oilseed shipments had arrived on schedule in the past few days and some now on the high seas were also expected to arrive on time.

“If you look at soya shipments from the United States, there is absolutely no change in arrival schedules,” Junejo said. “I don’t understand why shipowners should fear as the route is absolutely free from any kind of trouble?”

Some US grain cargoes bound for Southeast Asia and the Indian subcontinent take the Suez Canal, which links the Mediterranean Sea and the Red Sea, as do a major chunk of US shipments to the Middle East.

Junejo said rice export shipments held back last month because of the crisis were being rescheduled and traders were trying to meet their commitments as quickly as possible.

“The initial hiccups have been sorted out,” the minister said. “We are resuming our rice shipments.”

On wheat trade prospects, Junejo said, the nation had enough grain to export, even after selling many cargoes to the World Food Programme (WFP) to meet the demand for food aid.

“We have already sold about 300,000 tons of wheat to the WFP and we have indicated that we could sell another one million tons to them if there was a need,” Junejo said.

Pakistan, exporting wheat for the first time in many years, has contracted for more than 600,000 tons of the commodity so far in the year to June 2002.

“In addition to wheat, we are also expecting good demand for our rice.”—Reuters