The Karachi Chamber of Commerce and Industry has stressed the need to bring down shipping charges, which vary from $70 to $150 per container, and lower security deposits. The terminal operators have also raised their delivery charges which must also be withdrawn, it added.—Reuters/file
The Karachi Chamber of Commerce and Industry has stressed the need to bring down shipping charges, which vary from $70 to $150 per container, and lower security deposits. The terminal operators have also raised their delivery charges which must also be withdrawn, it added.—Reuters/file

KARACHI: Karachi Port Trust (KPT) Chairman Syed Syedain Raza Zaidi has said the authority will go very tough against the highhandedness of shipping companies for terribly looting the business community by overcharging under various headers without any justification.

The shipping companies need to submit details of their registration, licence, relevant laws or any agreements within 10 days which authorised them to take excessively high charges, the KPT chief said.

The direction came after representatives of shipping companies failed to defend their position and kept giving lame excuses in a meeting held at the KPT Head Office which was attended by the office-bearers of the Karachi Chamber of Commerce and Industry (KCCI) and stakeholders in the shipping industry, said a KCCI press release.

The KPT chairman while seeking details of any agreement between shipping companies and the State Bank of Pakistan for remitting dollars outside Pakistan, opined that it seems that shipping companies were engaged in a “big offence” by acting against the interest of Pakistan and creating more problems for the country by remitting billions of dollars outside the country which requires special attention.

“Who has permitted to charge such hefty freight charges, rentals, delivery order charges (DOs)?” he asked after reviewing all the evidence shared by KCCI President Iftikhar Ahmed Sheikh during the meeting but no adequate response was received from the representatives of shipping companies.

“KPT is the right authority from whom businessmen in distress could seek assistance in dealing with shipping companies and we’ll make sure that no injustice is being done,” Mr Raza added.

The KCCI chief demanded that free days should only start when the vessel completes the discharging process rather than from the date of the vessel’s arrival. Whereas Saturdays and Sundays along with all public holidays must also be exempted from being treated as free days as shipping companies remain closed during weekends and holidays.

“Some shipping companies even demand advance rent for 10 days during free days which is illegal and it clearly shows shipping companies’ intention to deliberately delay the process for making extra money,” he added.

“All types of charges being taken under various heads should be publicised by posting them on websites and made uniform in consultation with stakeholders so that traders could be aware of the likely expenditures on their consignments,” he suggested.

Published in Dawn, January 18th, 2024

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