KARACHI, Aug 28: The India, Pakistan, Bangladesh, Ceylon Conferences (IPBC) member lines have decided to increase their freight rates by $300 per 20 feet container and $600 per 40 feet container with effect from Sept 1, 2002.
This is second hike in freight charges in a short period of three months. The IPBC member lines last raised freight rates on June 1, 2002, by $150 for 20 feet container and $300 for 40 feet container.
The secretaries, Karmahom Conference (Karachi Committee), through an advice dispatched to trade on Aug 28, 2002, informed them about the increase to be effective from Sept 1, 2002.
The advice has stated that as part of their (IPBC) member lines rate restoration measures, current rates from Pakistan to UK, North Continent, Mediterranean and Scandinavian destinations will be increased by $300 per 20 ft container and $600 per 40 ft container.
Meanwhile, Pakistan Readymade Garments Exporters’ Association (PRGMEA) chairman Masood Naqi has criticized the shipping lines for taking unilateral decision to increase freight charges. He said that some government agency should be involved in this matter which was adversely affecting the country’s external trade of around $20 billion per annum.
Mohammad Kamran, leader of another export body — Pakistan Hosiery Manufacturers’ Association (PHMA) — said that frequent increase in freight charges was going to make “our exports uncompetitive in the world market” and suggested immediate action by the government.
Pakistan Bedwear Exporters’ Association (PBEA) chairman Shabir Ahmed apprehended that frequent freight hike will dilute the EU advantage of 15 per cent extra market access and removal of customs tariff on Pakistan imports.
He said the Export Facilitation Committee of EPB had also stopped holding meetings with exporters and as such there was no government agency to look after day-to-day issues confronting the export trade.
“I wrote a letter to the EPB chairman for convening Export Facilitation Committee meeting with regard to the Port Qasim Authority and QICT affairs as exporters are daily confronted with problems for no fault on their part, but I have yet to receive a reply,” said Shabir Ahmed.
He further said that the QICT was also increasing charges but it was not providing any service to the exporters and clearing agents, and as a result containers were shut out frequently due to which the LCs of exporters got expired and export orders were cancelled.
There is an urgent need to develop export culture in organizations to increase the country’s export trade, he maintained.
He said that high utility (power and gas) charges coupled with appreciation in the rupee value had already eroded much of the margin given by the EU in the shape of customs tariff and 15 per cent market access.
There is no government agency which could look after day-to-day problems confronting exporters, the PBEA chairman said, adding the EPB was pre-occupied in promotional activities only.
Even in the case of frequent freight hikes, he said, no concern was being expressed by any government department, which encouraged shipping companies to take unilateral decisions.
Shabir Ahmed said that foreign shipping lines were earning around one billion dollars annually from the haulage of cargo from the country and some pressure could be exerted.