I must congratulate All Pakistan Paper Merchants Association (APPMA) for placing material before the Competition Commission of Pakistan in the matter of alleged loot by shipping companies/agents with impunity, and also to Rahat Kaunain Hasan, Chairperson of CCP, for seizing record of Pakistan ship Agents Association for inspection and enforcing provisions of law to check the malpractice.
There is no exaggeration and without fear of contradiction, I state that in the shipping sector, swindling of over 100 billions a year is rampant, drained out of the country. Consumers suffered and cost of doing business also swelled, making Pakistani products cost prohibitive causing double jeopardy to the country's economy. The trade cried hoarse for over a decade, but no concrete measures were taken and the shipping companies/agents thrived on lethargy of authorities as well as on powerful and tangible lobby of the shipping companies/agents. For over a decade, the authorities only tried to shift responsibility to one another and the trade suffered.
Shipping agents were getting certain commission from shipping companies for service of arranging deliveries to importers and booking export cargo. In course of time, it reversed and ship agents competed to get agencies from shipping companies by not only giving free service but also by sharing the booty with them. It happened because ship agents extorted handsome amounts from trade and paid share to shipping companies. Some of the shipping companies dispensed services of shipping agents and opened their own offices in Pakistan to keep full booty. List of malpractice in the sector is too long to encompass in these columns. Regulating authorities allowed them to indulge in loot and plunder with impunity.
Terminal operators are not behind. Their modus operandi is no different except that they have no association in the name as such, but recovered unwarranted charges on the same pattern. They are a step ahead of shipping agents and some of them recovered port demurrage on behalf of Karachi Port Trust in excess than allowed under KPT tariff. Obviously, the excess is pocketed by them. Unsuspending importers paid.
It will not be out of place to mention about lethargic attitude of Security and Exchange Corporation. Under the insurance ordinance, person licensed can collect insurance premium. But, shipping agents, in flagrant violation, not only collected insurance from importers for alleged damage to containers without being licensed and without issuing insurance policy but, at the rate of premium ten times the tariff. Fact is that shipping companies are covered as well as the vessel and containers for damage risk under Protection and Indemnity Club, as it is carrier's liability. There is no justification for recovery from importers. Consumers already suffered much, economy of the country subject to double jeopardy. It is now time that the government acts swiftly, diligently and arrest the trend.