For 5,000 containers stuck-up in the capital, the traders would have to pay at least Rs 400m on account of rent and demurrages
The importers and exporters are bound to brave huge losses on account of rent and demurrages they would have to pay to the international shipping lines for thousands of containers detained by the law enforcers in Islamabad and parts of Punjab to regulate the participants of “Azadi” and “Inquilab” marches.
The traders are also haunted by their concern for the safety of at least 5,000 stuck-up containers, almost half of which are loaded with various imported and exportable cargoes. Moreover, many of the detained containers are laden with perishable items, said Federation of Pakistan Chamber of Commerce and Industry (FPCCI) President Zakaria Usman.
Having been put in detention by the police from federal and Punjab governments for more than a week, thousands of Twenty-feet Equivalent Units (TEUs), when set free, are expected to inflict heavy losses upon the traders who would have to pay hefty sums to the shipping lines under the head of rent and demurrages.
Former Karachi Chamber of Commerce and Industry (KCCI) vice president Nasir Mehmood said the amount of rent and demurrage for 20 and 40-feet containers vary from shipping line to shipping line. “Variable though, on average these range from $40 to $80 day,” he added.
Officials at Pakistan Shipping Agent Association (PSAA) while said the per day rent for a container ranges between $10 and $40, again depending on the shipping company.
A simple mathematics, however, reveals that for the 5,000 stuck-up TEUs, the traders would have to pay at least $4 million (Rs 400 million) on account of rent and demurrages. Daily losses to the traders come out to at least $ 400,000.
Moreover, FPCCI President Zakaria Usman said of the total some 1,500 to 2,000 TEUs are loaded with different kind of cargoes. “Obviously, Pakistan exports as well as imports perishable goods that can perish in the absence of reefer containers,” the industrialist said.
Further, the removal of containers by marchers on Tuesday night also concerned the stakeholders. “They (protesters) using cranes to remove containers might have damaged containers or the cargo therein,” apprehended a shipping agent.
“A 20-feet empty container weighs at least two tonnes or 2,000kg. They have filled sand therein to make these TEUs heavier thus more likely to get damaged,” the agent said.
As Wednesday saw the two marches entering into the seventh day, the business community claims to have incurred mammoth losses. According to KCCI president Abdullah Zaki, the trade and industry had lost Rs 126 billion until last week.
“We still have time to wake up. Otherwise situation would worsen within next two to three days,” warned Mehmood.
In an earlier statement, the shipping agents, who handle vessels calling at local ports, expressed strong reservations over current political unrest in the country.
“PSAA protests on utilizing containers belonging to its members as barricades by law enforcement agencies who have taken them by force from transporters some of which are laden with valuable import and export cargoes,” the association said.
On average, the PSAA said, 3,000 TEUs per day laden with export cargoes were arriving from the upcountry. While, it said, some 2,000 TEUs laden with imported cargoes were leaving KarachiPort or Port Qasim for up-country on daily basis.
“In current situation, containers are piling-up at both ports resulting in congestion and badly hampering port operations and shipping activities,” the shipping agents warned.
