‘Private terminal operators agree to extend free time for cargoes’

KARACHI: The Karachi Chamber of Commerce and Industry (KCCI) has said the long pending issue of accumulated demurrage charges on the containers and LCL cargo stuck at the private terminals at Karachi Port was resolved with intensive efforts made by the KPT chairman.

In a meeting, convened and presided over by KPT chairman at the KPT head office, the matter of demurrage charges incurred on import cargoes due to lockdowns was discussed between the stakeholders and resolved through the intervention of the KPT chairman, a statement said on Saturday.

The terminal operators and KCCI team led by Siraj Kassam Teli presented their viewpoints in order to resolve the issue of accumulated demurrage and enable the release of imported cargo before the approaching Eid holidays to avoid further accumulation of demurrage charges.

The matter had been under discussion for several weeks between importers and terminal operators. The private terminal operators were not extending the free storage time despite approval of the Ministry of Maritime Affairs and the Federal Cabinet to allow additional 10 days of free storage of FCL and LCL cargo.

The terminals have been recovering heavy demurrage and detention charges from importers on all containers and LCL cargo, which importers were unable to clear due to lockdowns imposed by the government to prevent the spread of COVID-19.

At the meeting, Teli reiterated that this was not the time for negotiations and bargaining, rather it was important to ensure that trade and industry survive the unprecedented crisis.

“In fact, the terminal operators are a partner with trade and industry of Pakistan, and now it is time for the terminal operators to extend a helping hand and support the economy of Pakistan,” he added.

Teli said that to counter the negative impact of COVID-19 on businesses, many countries around the world were adopting relief measures and providing stimulus to save their economies from total collapse. He therefore, urged CEOs of Private Terminals to contribute their due share to revive Pakistan’s economy and allow additional 10 days of free storage to consignees as approved by the KPT Board of Trustees, Ministry of Maritime Affairs, and the federal cabinet, “which is not too much to ask”.

In a very positive gesture, KPT Chairman Rear Admiral Jamil Akhtar extended the offer to provide any extra space of KPT land for storage of containers if required by the terminal operators at no cost. Further, he also assured the CEOs of private terminals to consider some concession in rental subject to approval by the Board of Trustees, during the period of 10 extra free days to be allowed by private terminals to the importers.

The terminal operators also demonstrated their willingness to help the consignees and agreed to allow the additional 10 days free time to consignees and complete the necessary formalities immediately so that cargo, which was piled up at ports might be released.

Teli and KCCI team expressed their gratitude to the KPT chairman and the CEOs of private terminals for their support and cooperation in resolving a very serious issue in an amicable manner.