KARACHI: Pakistani exporters on Tuesday complained about global supply chain disruption, saying their shipments were becoming more expensive due to the unavailability of containers which was leading to much higher freight charges.
The global supply chain industry is yet to recover from the impact of lockdowns imposed by countries since the emergence of the COVID-19 pandemic.
The container movement primarily become difficult due to the congestion at major ports in countries like the United States and China, resulting in significant rise in shipping costs worldwide.
“Exporters are worried since ships and containers are not available and freight cost has increased manifold,” Jawed Bilwani, chief coordinator of the Pakistan Hosiery Manufacturers and Exporters Association, told Arab News. “The containers that used to be only a phone call away are now made available after 20 days or more which delays our shipments. It also doubles our cost.”
Pakistani exporters said the availability of containers had become a major challenge to their businesses.
“The shipping line business is concentrated in a few hands, and these people are taking full advantage of the prevailing situation,” Khurram Mukhtar, patron-in-chief of the Pakistan Textile Exporters Association, said.
Local exporters informed freight charges had increased by 200 and 500 percent for 40- and 20-foot containers, respectively, since the emergence of the pandemic.
The cost of the 20-foot container from Karachi to the United States has increased from $5,157 to $7,685 since May, while its price for the month of October is quoted at $8,500.
Similarly, the 40-foot container price increased from $6,439 to $9,760 between May and September. The shipping line businesses plan to charge $10,800 for it starting next month.
Pakistani shipping experts believe the situation will not improve anytime soon and may take at least a year to get back to the pre-pandemic level.
“The pressure on global supply chain is mounting and there is no immediate solution in sight,” Mohammed A. Rajpar, chairman of the Pakistan Ships Agents Association, told Arab News.
He said that ships used to complete their full cycle from east to west and west to east in four to six weeks before the COVID-19 outbreak, but this duration went up to three to six months under the current circumstances.
He added that many shipping lines had also stopped their operations worldwide and scrapped their ships.
“New ships have been ordered and that will take at least two years to be delivered. New containers have also been ordered by companies,” Rajpar said.
Amid the aggravating situation, Pakistani exporters said the government should intervene by mobilizing the National Shipping Corporation, the national flag carrier and state-owned shipping company.
“All relevant ministries of the country must immediately intervene by taking necessary measures to safeguard the country’s exports,” the patron-in-chief of the Pakistan Textile Exporters Association said. “The government may dedicate its shipping corporation for export and import purposes for now.”
Pakistani exporters said they had been forced to pay demurrage — a charge applied to containers that are left at the port longer than their allotted free time — for the first time due to the ongoing shipping problems.
Pakistani exporters complain of high freight charges amid global supply chain disruption
https://arab.news/zny7a
Pakistani exporters complain of high freight charges amid global supply chain disruption
- Global shipping charges have increased by about 500 percent since the outbreak of the coronavirus pandemic
- Pakistani exporters want the government to activate the National Shipping Corporation to address the situation
Punjab committee clears kite-flying ordinance, assembly approval expected next session
- The ordinance sets strict registration requirements for kite makers and sellers, bans chemically coated strings
- Police of sub-inspector rank and above have been allowed to search premises and make arrests without warrants
ISLAMABAD: The Punjab Assembly Standing Committee on Home Affairs on Monday approved a new ordinance regulating kite flying, setting the stage for lawmakers to endorse the measure in the next assembly session as the provincial government moves toward reviving the Basant festival after a 25-year ban.
The Punjab Regulation of Kite Flying Ordinance 2025 has already received approval from the governor, with the provincial administration announcing earlier this month it would allow Basant to be held from Feb. 6-8.
The festival once drew thousands to rooftops across Lahore and other cities in the province, but from 2005 onwards authorities repeatedly prohibited kite flying after dozens of people, many of them children, were killed or injured by metal and chemically coated strings that slashed motorcyclists and pedestrians.
“It is necessary to provide for regulation of kite flying in Punjab in order to save human life, public and private property and matters connected therewith,” the ordinance said.
Under the ordinance, kite makers, sellers and kite-flying associations must register with the deputy commissioner, and kite flying may only be permitted in districts where the government issues a formal notification.
District authorities may allow kite flying only with prior approval from the provincial government, the text said.
The ordinance also imposes up to five years’ imprisonment and fines of up to 2 million rupees ($7,200) for manufacturing, transporting or selling prohibited kite strings, including metallic wire, nylon cord (tandi) or chemically coated sharp string.
Unregistered kite production or sale carries penalties of up to five years in prison and fines of up to Rs500,000 ($1,800).
Offences under the ordinance are cognizable and non-bailable.
“A police officer not below the rank of sub-inspector may, upon receiving information regarding prohibited kite material, conduct a search or make an arrest without warrant,” the ordinance said.
The ordinance repeals the Punjab Prohibition of Kite Flying Ordinance 2001 and is expected to be presented to the provincial assembly for formal approval when it reconvenes, officials said.
