Tariff increase by int’l shipping cos to harm exports: NKATI

KARACHI: President, North Karachi Association of Trade & Industry (NKATI), Faisal Moiz Khan has termed the four-time increase in tariff charges by international shipping companies as a threat to the country’s exports.

He asked the Government of Pakistani to play role like the US Federal Maritime Commission, and also seek clarification from global ocean carriers on the drastic increase in tariff charges, so that the country’s exports, imports can be saved from unnecessary costs. Otherwise, the huge increase in cost will make exports and imports from Pakistan impossible.

He said that the US Federal Maritime Commission (FMC) has asked 8 major global ocean carriers - CMA CGM, Hapag - Lloyd, HMM, Matson, MSC, OOCL, SM Line and Zim to provide detail about charges, so that it can be observed whether the increased charges of the said carriers are valid or not.

Therefore, the Government of Pakistan should also seek clarification from international ocean carriers regarding surcharges and other charges. In order to eliminate unfair charges and to eliminate the factors that caused the cost of domestic exports & imports.

“It should also be examined what justifications are being offered by international ocean carriers for the increase in tariff charges. Because in many countries, including the United States, changes in ocean carrier tariffs or rate increases are subject to specific requirements. Including providing 30 days’ notice to ships and ensuring that published tariffs are clear and unambiguous,” NKATI president added.

Faisal Moiz Khan opined that it should also be reviewed that the said surcharges have been made properly and in compliance with legal and regulatory obligations and if the increase in tariff charges is unjustified then it should be abolished.

He suggested that Pakistan should also implement international style rules and regulations to ensure that global ocean carriers are not improperly charged.

Copyright Business Recorder, 2021