20000225

IPBC raises

freight for

Europe from April 1

MUZAFFAR QURESHI

KARACHI: The India-Pakistan-Bangladesh Conference (IPBC) lines has announced increase in freight to Europe by 150 dollars for a 20 ft. container and dollars 300 per 40 ft' container from April 1, 2000. The increase has been termed as a rate restoration measure.

The increase will apply to all exports originating from Pakistan to UK, North Continent, Mediterranean and Scandinavian destinations. This is the first increase in freight by IPBC member lines this year which comes on heels of a similar increase from October last year.

The local ship agents of IPBC lines in a circular have informed their clients, mostly exporters that "as per instructions IPBC member lines wish to advise that as part of their rate restoration measures current rates from Pakistan to UK, North Continent, Mediterranean and Scandinavian destinations will be increased by 150 dollars per 20' and 300 dollars per 40' w.e.f Ist April 2000".

Commenting on the proposed increase in freight, exporters said that the move by IPBC lines would make Pakistani exports to Europe more expensive and would make them uncompetitive in the world market.

Shabir Ahmed, a leading exporter said that the Ministry of Communications and Export Promotion Bureau should take note of the arbitrary increase in freight by foreign shipping lines which is detrimental to country's exports.

He suggested that the Pakistan National Shipping Corporation (PNSC) which at present operates container service to Far East destinations to start a regular service to Europe at reasonable freight so that Pakistan's exports should be shipped conveniently to destinations in Europe. He regretted that in the absence of national merchant fleet, 90 percent of national cargo, both import and export, was carried by foreign shipping lines squeezing precious foreign wealth of the country.

Shabir pointed out that the value of exports to Europe was already suffering due to continuous erosion in value of the European currencies and the increase in freight would further add to the losses incurred by the exporters.