Shipping companies fleecing exporters

KARACHI - The shipping companies, both foreign and local, are forcing commercial and manufacturer exporters to pay extra amount of money in terms of increased freight rates which often rise per hour/per consignment amid growing demand and supply of export-oriented different commodities. According to the sources, the undeclared price-hike in freight charges is affecting export business by increasing exporters' cost of running business. They are not fulfilling the international buyers orders by facing huge damages due to insufficient service of the shipping operating companies, exporters told The Nation.   The exporters have asked the Government, Ministry of Shipping, Ministry of Commerce and all concerned departments to formulate strict rules and regulations for shipping companies to protect the export industry.   An exporter told The Nation that the shippers' agents were blackmailing the export traders in cargo handling of export items, from clearing to forwarding by saying that if they did not fulfill their demands, the shipments would be diverted to other destination rather than to the port buyers docks. In some cases, they were threatening exporters for delaying the consignments for 48 hours. The deferring-like situation of agri-based food items such as, rice, vegetables and fruits makes more miserable for the exporters as there is lack of proper storage, refrigeration and processing facilities in our ports. The shipping operators are not providing value-added services. Frequent complaints are being received from the exporters' side about the shipping agents who are involved in making shut-out exporters' shipments from entering a buyer's port. When the export trade of key commodities ranging from rice to cement for Middle East, African and South Asian countries gets momentum, the shipping companies start charging additional money with 3-4pc increase from each and every consignment, said exporter. There is no any criteria or tariff structure for shipping fares thus, if in any case, exporters and merchants show their unwillingness towards paying extra charges, the said companies refuse to place exporters order, he added. The shipping companies do not provide insurance facility the cost of insurance and freight is paid by buyers according to the purchase agreement between exporter and buyers. In case of damaging export shipments being caused by shipping company fault, the exporter is not compensated even the company is not give any guarantee to protect consignments. The fruit and vegetables exporters reported have faced the huge loss of Rs.100m to 130m of rupees. According to the All Pakistan Fruit & Vegetable Exporters, Importers and Merchants Association, a ship operated by Karachi Agents Sea Consortium loaded about 37 containers of Mango and Potato for Dubai on 07.06.08 was having problems but the fault was not reported to the exporters/shippers. It sailed for Dubai on 13.06.08 but again it developed fault on its voyage to Dubai, ultimately toed to the Dubai Port where it called on 23.06.08.  Although, Mango and Potato were packed in the refrigerated containers, but being perishable cargo, it was damaged 100pc by reaching there. They did not know whether the refrigeration system was working or not. Fruit and vegetable exporters are already facing liquidity problems.  Their stuck up subsidy amount of previous years had yet not been paid.  They are still striving to retain their international market share of fresh fruit and vegetable export. On the other hand monopolistic and inefficient services of the shipping companies are aggravating the situation.

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