Exorbitant rise in freight charges by foreign shipper

The international shipping lines have once again raised the freight charges by 300 dollars to 800 dollars or 30 to 40 percent by imposing general rate increase and peak season charge in the wake of rising demand of cargo shipments, industry sources told Business Recorder on Monday.
They said that almost all-international shipping lines had raised the freight charges due to huge booking orders for shipment of cargo from China and Far East to Pakistan. "Shipping lines have imposed general rate increase (GRI) and peak season charges (PSC) effective from July, besides raising the freight tariffs, " sources said.
GRI has been imposed at the rate of 150 dollars on 20-foot container and 300 dollars per 40-foot container, while the PSC at the rate of 150 dollars on 20-foot container and 300 dollars on 40-foot container by shipping lines with immediate effects. Therefore, the shipping lines have increased overall 300 dollars to 500 dollars per 20-foot container and 600dollats to 800 dollars on per 40-foot container.
Presently, the shipping companies are charging 1,400 dollars to 1,600-dollar freights per 20-foot container previously being charged at 900 dollars to 1,100 dollars per 20-foot container on cargo import from Far East and China.
In addition, the shipping lines are now charging 2,500 dollars to 2,800 dollars freight on 40-foot container for China as compared to previously charged 1,800 dollars to 2,100 dollars per 40-foot container, they added.
"Presently huge cargo shipments demand have been witnessed from different Chinese ports, including Shanghai, Beijing and Xon Xong, therefore, a heavy raise in freight charges from China have come out," they said.
China has become a member of World Trade Organisation from July 1, after which its industry tax structure has been raised by 22 percent. Chinese exporters have delivered their export orders at ports, aimed at getting exemption from this tax.
They said that the shipping lines had not raised the freight charges for the export cargo shipment from Pakistan as they had already raised the freight by 150 dollars on 20-foot container and 300 dollars on per 40-foot container for European destinations last month.
Sources said that the shipping lines had also increased the freight charges on the import from Thailand, Taiwan, Malaysia, Indonesia and other Far Eastern countries. "Country''s imports are likely to be hit to the tune of million of dollars following the increase in freight by the foreign shipping companies," importers said.
Although the exact figures of additional payments in the term of freight charges could not be calculated, the leading importers apprehended that the prices of the imported products would go up by 10-15 percent, they added.
They said that some shipping companies had informed their clients verbally that the freight charges would be further raised by 200 dollars per 20 foot container and 400 dollars per 40-foot container from August 1 and from September 1 with the same ratio on import and export of cargo.