KARACHI: Karachi Chamber of Commerce and Industry (KCCI) on Saturday urged the shipping lines and terminal operators working at Karachi ports to ease demurrage and detention charges of the containers that have been stuck at the ports on non-issuance of letters of credit (LCs).
The chamber hailed a recent decision by the government to waive the demurrage charges at Karachi Port Trust (KPT) and Port Qasim Authority (PQA), asking the shipping lines and private terminals to adopt the same by easing their charges to facilitate the business community.
“Barely around 5 to 10 percent containers are stuck at the state-owned KPT and PQA while the rest of 90 percent containers are lying at the private terminals,” KCCI president Mohammed Tariq Yousuf said.
He added that the government had already made a request to the shipping lines and private terminals to give some relaxation in detention and demurrage charges.
“We fully understand that private terminals and shipping lines are also businesses, which are operating at a very hefty cost to make earnings in an extremely challenging environment, but it’s not necessary to generate maximum profits all the time.”
It was neither the business community’s nor the terminal operators’ or shipping lines' fault but “we all must realise the gravity of situation as our country is facing severe foreign reserves crises and a battle for survival is currently underway,” KCCI chief said.
He stressed that the government should also pressurise the shipping lines and terminal operators to give one-time waiver in demurrage and detention charges. “
They must understand that this amount is coming to them as extra profit because
under the normal circumstances, containers do not stay for that long and do not attract that kind of a windfall.”
Yousuf further commented that a crisis being witnessed at the ports was purely an outcome of ill-considered policies implemented hastily without carrying out any consultation with stakeholders.
The government must learn from mistakes and accordingly take steps in consultation with stakeholders so that such occurrences could be avoided in future, he added.
KCCI president hoped that the terminal operators and shipping lines would announce the asked relief in terms of waiver in demurrage and detention charges for the stuck containers.
He also urged the government to ensure release of the containers at the earliest to minimise a supply chain crisis.