Country's exports are likely to hit adversely after the increase in freight charges by the foreign shipping companies. Although the exact figures of losses could not be calculated, leading exporters reckon that the Pakistan textile products' prices would go up by 4-5 cent per unit, which has made Pakistani products dearer in the international market.
They said that the country's exports would become once again costlier, as the international shipping agents have raised freight charges, a move that would further mount pressures on the already country's hurt exports.
The international shipping lines have raised freight charges by 25 to 125 percent for different destinations. "Freight has been increased on both sides on the imports and the exports of the goods from June 1, 2007," said a leading shipping agent requesting anonymity.
Shipping companies have raised $200-300 freight to average $1,100 from $800 on 20 feet container for European destination on the account of General Rate Increase (GRI), he informed. In addition, they (shipping lines) have increased around $300-500 freight on 40 fit container for Europe, now it has reached at around $2,200 as compared to previously charged $1700-18,00 per 40 feet container, he added.
He said freights for USA had not increased on the recommendations of Pakistani shipping agents, as they believed the freight is already higher for Pakistani cargo. "Although shipping lines have not increased freight for USA but now they will increase them in the next one or two months, while a raise of $200 per 20 feet container and $400 on per 40 feet container will be applicable from July 1, 2007," he informed.
He said that some shipping companies have issued notices to their clients that freight will further rise by $200 per 20 feet container and $400 per 40 feet container from July 1 and from September 1 with the same ratio for UK, North Continent and other ports.
Presently huge cargo handling demand has been witnessed from Chinese ports, therefore, a heavy raise in freight charges from China has come out, he said.
On the other hand, country's exporters have shown concerns over rising freight charges by shipping lines and said that this factor will put a negative impact on the country's exports.
Masood Naqi, a leading textile exporter said that the increasing shipping freight would bring about further decline in textile export. "Yes, I have been informed by the shipping agents that shipping companies have raised freights for Europe and some other destinations and they will raise further in the near future," confirmed Saleem Parikh regional chairman Pakistan Hosiery Manufacturers Association (PHMA). Exporters are running their factories to save their investment and to control rising unemployment.
Shabbir Ahmed chairman Pakistan bed-wear exporters association said that country has already missed its export target, expressing fear that rising freight could also hit the next fiscal's target. Several times office bearers of Pakistan shipping agents association were contacted for their views on telephone but they did not attend.
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