KARACH: Foreign shipping lines are gearing up to impose heavy freight charges while some companies have planned to implement emergency operational recovery surcharge (EORS) by middle of this month.
Shipping industry people said that CMA CGM has circulated a letter regarding immediate implementation of EORS on all shipments to and from Pakistan from May 15 until further notice (valid until June 6 for US, Latin America and Australia).
CMA CGM said this measure has become necessary due to strong geopolitical developments in the region which have significantly impacted on our operations. The surcharge is essential to maintaining the continuity, safety and reliability of our services during this period.
The surcharge ranges between $300 and $800 per unit from Pakistan to Europe/Med/US/Africa and from Asia to Pakistan and from Europe/Med/US/Africa to Pakistan and from Pakistan to Asia.
Ships loaded with Indian goods allowed to dock at Pakistani ports
The Chairman of Pakistan Ship’s Agents Association (PSAA), Mohammad Rajpar, told media that “in my opinion, transit time will increase plus freight”.
Besides, India’s restriction on access to Indian ports by international shipping lines vessels carrying Pakistani cargo is apparently aimed at discouraging international shipping lines from calling at Pakistani ports which is unwarranted and against international conventions.
While condemning recent unprovoked and unjustified Indian actions, he said PSAA members and international shipping lines will recalibrate their services to Pakistan in order to ensure the country’s trade connectivity remains unimpeded.
The entire shipping community of Pakistan stands united with the state of Pakistan and its armed forces in the face of India’s aggression and vile propaganda against Pakistan, he said.
A former chairman of Karachi Customs Agents Association (KCAA), Younus Soomro, said besides CMA CGM, another shipping company is reported to have imposed additional charges ranging between $300 and $800 per unit.
He said foreign shipping companies have become active in raising various charges despite the fact that India-Pakistan clashes are not taking place at sea. However, additional surcharges and freight rates would hurt the country’s exports.
Meanwhile, an official of Karachi Port Trust (KPT) said that so far operations are normal and there is no congestion at all.
Ships with Indian goods allowed
Meanwhile, the government has accepted a demand of the maritime industry to allow cargo ships loaded with Indian goods to dock at Pakistani ports. Against the backdrop of escalating tensions between Pakistan and India, the Federal Ministry of Commerce on Thursday issued a clarification regarding its earlier decision to suspend trade ties with India.
The Ministry of Maritime Affairs had issued a shipping order on May 3. “Effective immediately, barring Indian flag carriers from calling at Pakistani ports and restricting Pakistani flag carriers from visiting Indian ports, with exemptions to be considered on a case-by-case basis,” the order said.
Whereas the PSAA had sought the details from the government if the ban does not apply to Indian Reshipment on Board (RoB) cargo. The PSAA stated that the information was in the greater interest of Pakistan’s economy.
In response to a query by the PSAA, the commerce ministry stated that these restrictions do not apply to vessels carrying Reshipment on Board (RoB) cargo, meaning goods on ships that are merely passing through Pakistani ports without being unloaded or entering the domestic market are exempt.
“This ensures that sea transit trade, particularly RoB cargo bound for or arriving from India, will proceed uninterrupted,” the statement by the commerce ministry stated.
The statement has been forwarded to the Ministry of Maritime Affairs, and the PSAA too, it aims to reassure international shipping companies and regional trade
The PSAA noted that a majority of large container ships visiting Pakistan carry up to 70 percent Indian goods and warned that India’s port restrictions could discourage international shipping lines from calling at Pakistani ports altogether.
Earlier on May 2, India had amended its foreign trade policy to prohibit the import and transit of all goods originating in or exported from Pakistan.
The restrictions imposed by India include transit cargo destined for Pakistan but routed through Indian ports as a result around 6,000 to 7,000 TEUs (twenty-foot equivalent units) of weekly export volume from Karachi has been disrupted.
