KARACHI, March 28: The shipping lines calling at the Karachi and Qasim ports have increased bunker charges to $95 per 20 feet container and $190 per 40 feet container with effect from April 1, 2003.

This is a second rise in bunker charges in a short period of one month. The last hike was made on March 1, 2003, when the charges were raised to $90 per 20 feet container and $180 per 40 feet container on all the export cargoes.

These charges have been enhanced under ‘bunker adjustment factor’ and intimidated to the exporters through a circular by the local agents of shipping lines.

In general, there will be an additional effect of $5 to $10 per TEU, but on taking previous rise in bunker charges a total rise during the last one month would go up to $25-35 per TEU.

The charge is in addition to rate restoration charge at the rate of $250 per 20 feet container and $500 per 40 feet container applied on export shipments to Europe from March 1, 2003.

Shipping sources said that due to Iraq war there had been frequent rise in oil prices in the world market that increased the operational cost of vessels and it became imperative for the shipping lines to made adjustment in bunker (fuel) charges accordingly.

The sources said there were strong indications that the underwriters, who were mostly based in London, would soon be imposing a ‘war risk surcharge’ as Iraq war is being anticipated to prolong than earlier estimates made by the allied forces.

During the Afghan war the underwriters imposed war risk surcharge on all vessels calling at the country’s ports and this put an additional burden on the export goods.

Former chairman, Pakistan Bedwear Exporters Association (PBEA), Shabir Ahmed, has urged that the government should closely monitor the developments and even directly approach the underwriters in this regard.

He said in the worse scenario the government should provide ‘sovereign guarantee’ to avoid the imposition of war risk surcharge (WRS) which made “our products uncompetitive in the world markets owing to additional cost.”

He said in the Afghan war there was no justification of imposing WRS on vessels calling at country’s ports, but yet the underwriters took advantage because there was no resistance from the government side.

Mr Shabir was critical about the performance of the Export Promotion Bureau’s committee and said instead of contacting the head offices of shipping and airlines it was only approaching the local agents of these companies.