KARACHI (January 20 2004): Foreign shipping companies have refused to decrease the freight for Jakarta from 2,650 dollars per container to bring it to the last year's level of 2,200 dollars for kinno shipments.

The shipping lines had increased freight by an average of 500-dollar per container for the Far East and the Middle East ahead of the kinno export season in December last year.

Jakarta is the main market for Pakistan's quality fruit.

A meeting between the leading fruit exporters and the shippers failed to bring any result on the issue of exorbitant freight, which, the fruit exporters alleged, had drastically cut their profitability.

The representatives of major shipping companies, Maersk Sealand, American President Line (APL), Hyundai and Evergreen said at the meeting that they had conveyed the Pakistani exporters' request to their principals, but they had refused to reduce the freight and bring it to the level of last year's freight.

Apart from the increased freight, the shipping lines are also charging a general rate increase (GRI) of 150 dollar for a 40-foot container from January 1.

They further said that local offices of the shipping companies and ship agents, which represent these companies, were given every year, the sale targets and they were compelled to meet the same.

When asked if the increased freight had adversely affected the export of kinno, a leading exporter told Business Recorder that the exports had, in fact, increased due to the bumper crop at home and more demand from the buyers.

He said that the exporters were forced to export the surplus fruits on breakeven basis to recover the huge investment, including the workers' wages and rent for the equipment obtained for the maintenance of the crop and processing of the fruit to make it acceptable in the world market.

The exporters and shipping lines reached an agreement to eliminate the present shortage of reefer containers by importing more empty containers for the Pakistani market.

They pointed out that the demand for reefer containers this year was much more than the last year's season and miscalculation on the part of shipping companies about the needs of reefers in the market resulted in the shortage.

The lines representatives assured the exporters that from next year, they would ask the exporters to submit their reefer containers requirements ahead of the kinno season and their requirements would be duly met.

It may be pointed out that the shortage of reefer containers adversely affected the export shipments and the number of average weekly shipments was cut down by 50 percent.

Courtesy Business Recorder