Ship agents body unaware of freight hike by members!

23 Jun, 2007

It is ironical, indeed, that Pakistan Ships Agents Association (PSAA) is unaware about the increase made in freight rates by its members. While clarifying a report published in Business Recorder in this regard, the PSAA said.
"We have received a lot of queries as to why our members/their principals have increased freight rates from China when, in fact, they have not done so."
Several leading exporters, importers and those in shipping trade, when approached for their views on the issue, said that PSAA would do well if it would re-check with its members, as well as the exporters, why and how one of PSAA members, who was earlier charging $100 for 20-ft container to Shanghai, was not now only asking exporters to pay $180 for the same commodity but was also asking much higher rates for other destinations.
The trade has always protested increase in freight rates and exorbitant documentation charges, including R & D charges, by container terminals and ship agents. PSAA does not issue any notification for increase in tariff by its members and even, at times, is totally unaware about the levies being collected by its members.
The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and other trade bodies had, in the past, approached the ship agents association and shippers' association for harmonisation of charges, but without any success.
Ship agents continue to charge excessive documentation charges from the trade, making both imports and exports costlier. It is amusing that Pakistan Ships Agents Association (PSAA) has confirmed in its clarification that freight increase had definitely taken place for cargoes emanating from other destinations to Pakistan.
Pakistan Ships Agents Association (PSAA) is probably unaware that Maersk Line Pakistan (Pvt) Ltd, through a notice to trade, had announced on April 30 a conference rate increase of $600 per 20-ft and $1200 per 40-ft container, to be implemented in three phases: From May 1, 2007 an increase of $200/20' and $400/40'; July 1, 2007 an increase of $200/20' and $400/40'; and September 1, 2007 an increase of $200/20' and $400/40'.

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