DAWN.COM

Today's Paper | May 05, 2024

Published 30 Jul, 2005 12:00am

Shippers resolve to end freight hikes

KARACHI, July 29: The Association of Shippers’ Councils of Bangladesh, India, Pakistan and Sri Lanka (ASCOBIPS) on Friday resolved to join hand with other shippers’ councils of the world to bring to an end the ‘Anti Trust Immunity’, under which the shipping lines resort to ‘frequent and unjust’ freight hikes.

This was the outcome of an internal meeting of the ASCOBIPS’ members held at the Federation House, where delegates after discussing common issues relating to shipping faced by member countries adopted four resolutions pertaining to free trade, cut in cost of doing business, exchange of information and trade facilitation.

This was disclosed by Abdul Rasheed Janmohammed, the chairman, Pakistan Shippers Council (PSC) and by Mr John, chairman of Asian Shippers Council (ASC) at a joint press conference, which was also addressed by other members of the ASCOBIPS.

The delegates were unanimous in their view that in the presence of ‘Anti Trust Immunity’ the shipping lines, which operate under cartels, would continue to resort to frequent and unjust freight hikes, which ‘killed’ business, particularly of small and medium enterprises.

“We would join hands with other bodies of shippers like Asia Shippers’ Council, EU Shippers’ Council and ASEAN Shippers’ who have already expressed their resentment over the anti-trust immunity given to shipping lines,” the resolution said.

All those countries that had given anti-trust immunity to the shipping lines would also be approached and “we will try to convince them along with other shippers’ councils to withdraw the immunity,” the ASCOBIPS members told the media members.

Mr John, the chairman, Asian Shipping Council, was candid about his views and said that the victimization by shipping lines was more conspicuous in developing countries than in developed countries and its impact was more severe on small and medium business of these countries.

Though the ‘anti-trust immunity’ was negotiated at International Maritime Organization (IMO) but shippers who had no clout normally gave in to the pressures of shipping lines who mostly belong to developed countries, asserted Mr John.

It was also pointed out that mostly there was no logic in increasing freight rates by shipping lines that did not adhere to the UNCTAD rules of giving 150 days advance notice before affecting the hike in freight rates.

“We must say that the trust given to the shipping lines has been breached and they are resorting to unfair trade practices which we want to bring them to an end with the joint efforts of other shippers’ councils,” they added.

Under the anti-trust immunity, they said the shipping lines could not be challenged in the court of law particularly with regard to freight hikes and any matter related to freight, Mr John said.

Abdul Rasheed Janmohammed said that the shippers would like to include all sort of charges under one head i.e. freight charges and also want to ensure that final liability was discharged at the port of loading and not at the port of discharge which created a lot of problem for shippers.

Similarly, it was also pointed out that Home Bill of Lading should be stopped forthwith and only Master Bill of Lading should be allowed and be acceptable for getting the delivery of goods. If there was any logic for freight hike it should be affected through proper system of practice.

The condition to get NOC (No Objection Certificate) from national flag carrier should be done away with because the PNSC was not providing any service to India and this was hindering growth of trade between the two countries. For this, proper shipping protocol should be signed by bringing in necessary amendment in the existing protocol.

It was also suggested that regular shipping service should be arranged between Karachi and Chittagong because there was rapid rise in import of jute which stood at 140,000 tons from Bangaldesh. After signing of Free Trade Agreement (FTA) with Sri Lanka there was a need to have regular shipping service between Pakistan and Sri Lanka.

The ASCOBIPS delegates led by its President from Bangladesh Mohammad Farhad Ahamed Akanda included Noel Priyatilleke chairman Sri Lanka Shippers’ Council, Lt Cdr ® Srinivassan president Western India Shippers Association, Mahesh Reddy Secretary All India Shippers Council, Mr John Asian Shippers Council and Abdul Rasheed Janmohammad chairman Pakistan Shippers’ Council were present on the occasion.

Read Comments

Pakistani lunar payload successfully launches aboard Chinese moon mission Next Story