KPT, PQA lauded for waiving demurrage charges: KCCI chief urges terminal operators, shipping firms to adopt same policy

KARACHI: President Karachi Chamber of Commerce & Industry (KCCI) Mohammed Tariq Yousuf while appreciating the spirit shown by Karachi Port Trust (KPT) and Port Qasim Authority (PQA) by waiving demurrage charges, urged all Terminal Operators and Shipping Lines to adopt the same by sharing the burden of heavy demurrage and detention charges with the business community so that thousands of stranded containers could be released at the earliest which would lead to normalising almost stagnant trade, industrial and economic activities.

In a statement issued, president KCCI pointed out that barely around 5 to 10 percent containers were stuck at the state-owned KPT and PQA while the rest of 90 percent containers were lying at the private terminals who have already been requested by the government to relinquish their demurrage charges while Shipping Lines must also give some relaxation in detention charges so that the hardships being faced by business community during the ongoing difficult times could be minimised.

“We fully understand that Private Terminals and Shipping Lines are also businesses which are operating at a very hefty cost to make earnings in an extremely challenging environment but it was not necessary to generate maximum profits all the time so they must forgo some portion of their profitability for once which would certainly prove beneficial for their businesses in the long run and further cement the existing ties with their customers.

“It is neither the business community’s nor the terminal operators or Shipping Lines fault but we all must realise the gravity of situation as our country is facing severe foreign reserves crises and a battle for survival is currently underway so we all need to work collectively and share each other’s burden during these difficult times so that businesses and the economy stay afloat.”

He stressed that the government should also pressurise Shipping Lines and Terminal Operators to give one-time waivers in demurrage and detention charges as they must understand that this amount was coming to them as extra profit because under the normal circumstances, containers do not stay for that long and do not attract that kind of a windfall, hence, the Shipping Lines and Terminal Operators must understand that it was an extraordinary situation wherein they should not be charging something which was not according to their normal profitability.

“One has to realise that this money would not have been billed in the normal circumstances, therefore, they should forgo it and relief has to be given as in many cases, the value of goods inside the container is less than these charges,” he added.

President KCCI further commented that the disaster being witnessed at the ports was purely an outcome of ill-considered policies implemented hastily without carrying out any consultation with stakeholders.

“The government must learn from mistakes and accordingly take steps in consultation with stakeholders so that such occurrences could be avoided in future,” he added.

Keeping in view the extraordinary situation, Tariq Yousuf hoped that the Terminal Operators and Shipping Lines would announce the required relief in terms of waiver in demurrage and detention charges for the perturbed members of the business community at the earliest which would be widely welcomed.

Copyright Business Recorder, 2023