Sea freight will be up from December 1 for all exports to Europe by 150 dollars and 300 dollars for a 20-foot and 40-foot container respectively. The freights, under a general rate increase (GRI), announced by the India-Pakistan-Bangladesh-Ceylon Conference (IPBCC), will be implemented by the entire member shipping lines.
Maersk Sealand, the leading shipping line, has informed the exporters that a GRI is being implemented on the European sector with from December 1.
As a member of the IPBCC, the Maersk will implement the GRI from December 1 at the export rates of 150 dollars for a 20-foot hi-cube and 300 dollars for a 40-foot hi-cube.
It said the increased freight would be applicable from the first sailing in December, which was expected to be on December 1, adding all member lines of the IPBCC would implement the new freight rates.
This is the second freight increase by the IPBCC in just three months, and a GRI was implemented by the member shipping lines on September 1 for the same amount.
Apart from the GRI, the exporters to Europe have to pay a bunker (fuel) surcharge and the currency adjustment factor (Café) on their shipments.
The freight increase would adversely affect the rush of the textile exports to Europe before the end of the last quota year.
While the textiles shipments to the US have been reduced due to high utilisation rates in several categories, the export shipments to Europe are in full swing mainly because to avoid the import duty due to be enforced with the expiry of current scheme of generalised system of preferences (GSP).
Presently, there is great rush of the textile export shipments to Europe from Port Qasim and long queues of cargo trucks, waiting for their turn to enter the Qasim International Container Terminal (QICT), are witnessed.