20000328

Exporters resent

Container freight

for Europe, West

raised from April

RECORDER REPORT

KARACHI:Freight on containers for Europe and beyond will increase, by 200 dollars on 20 ft container and 400 dollars on 40 ft container, from April 1, 2000.

Foreign shipping companies or their agents have sent a notice to exporters informing them about the increase. The notice says,"" We wish to inform all our valued customers that as per the combined decision of all shipping lines there will be a general rate increase effective 1st April, 2000 on all Europe and West-bound containers/shipments ex-Pakistan as follows:

"20'-foot containers USD 200

"40'-foot+ high cube containers USD 400"

Textile and leather exporters have strongly resented the increase in freight saying that the increase in shipment to Europe would adversely affect the exports which are already on decline.

Shabir Ahmed, Chairman Pakistan Bedwear Exporters Association (PBEA) said in a statement that the step would prove a 'last nail' in the coffin of exports to Europe which are already suffering due to constant decline in the value of European currencies against dollar.

He said that the increase in freight coupled with abnormal increase in yarn prices, would make Pakistani products uncompetitive in the European market which is already being lost to our competitors in Bangladesh and in Far East.

Shabir expressed surprise over the silence maintained by the government on the hue and cry raised by the value-added sector and said that it implied that the Government had succumbed to pressure of the influential spinners' lobby in the country and the high ups in the ministry of commerce and the Export Promotion Bureau are interested in meeting the export target only at the cost of the value added textile sector.

He urged the minister of commerce to immediately intervene to save the value-added sector which is doomed, due to rise in yarn prices and sea freight, to a total collapse.