Freight rates suddenly raised by shipping companies: 2500 containers stuck at Chinese port

Some 2500 containers of miscellaneous items, worth over 15 million dollars are reportedly stuck at a Chinese port due to sudden raise in tariffs by shipping companies, importers told Business Recorder here on Tuesday. "These consignments are stuck for last 15 days at Xingang port of China, and the number of containers is increasing," they added.
Almost all shipping companies have raised their tariffs by approximately $1,000 to $2,300 on 40 ft container from $1,300 in the wake of high demand of shipments and monsoon season in the Persian Gulf region, they said. Tariffs on 20 ft container have been raised by $500 per container and now the shipping companies are charging $1,400 per container against previous $900.
"The sudden raise in freight charges by shipping lines would increase the cost and imported items would become costlier. Therefore, importers have stopped all consignments at the Chinese ports," importers said. They said that Pakistan''s major imports are from China because of low rates in the region. Xingang port is the main port of China for exports to Pakistan. The stuck containers are loaded with chemicals and dyes, electronics, steel products, cloth, toys, crockery, cosmetics, cement plants and other products, they said.
"I am a chemical importer and around 200 containers belonging to us alone worth 0.5 million dollars loaded with chemicals are stuck at the Chinese port," said Haroon Agar, an importer of chemicals and plastic. Rumours of cut in the rebate from 13 percent to 5 percent by China are circulating in the Chinese markets, offering the importers an incentives to take away their delivery at the earliest. Therefore, importers are trying to ship their consignments immediately, he said.
High freight demand by shipping companies is unaffordable for local importers. Therefore, they have stopped shipment of consignments from China, he added. "We are waiting for decline in the freight to book consignments but if it would not reduce within next few days then we will be forced to import the commodity at high tariff," importers said.
Chinese exporters are demanding extra cost for freight and pressuring for delivery as their port demurrages are increasing day by day, they said. They said, "If the shipping companies do not reduce their freight charges then we will import the goods at high tariff, which could raise local prices".