A shipping line official said on Thursday that the shipping lines business would receive a substantial setback with the imposition of anti-dumping duty on the bed linen exports from March 18.
"Textile exports will naturally slow down due to the duty and hence the lines are compelled to increase freight to compensate for the losses," he added.
The official was unable to calculate the amount of cargo loss due to occur from imposition of anti-dumping duty on bed linen, but said that the exports to Europe would take a major dip after March 18.
Under the General Rate Increase (GRI), to be implemented for exports to Europe, the freight for a 20-foot box will be increased by 250 dollars and by 500 dollars for a bigger box.
Elaborating the reasons for the freight increase, the official said that the GRI had become inevitable to offset falling freight revenues due to down-turn during off-season and Christmas festivities in Europe.
As the subdued freight continues with the start of new year, the shipping lines implement plans to restore the rates to their original level. The GRI would serve the same purpose.
It may be pointed out that major export houses have decided to stop import of machinery and chemicals from Europe if the European Union (E.U) did not withdraw anti-dumping duty on bed-linen exports from Pakistan.
The reaction of the Pakistani textile exporters on the E.U. move would seriously affect imports from Europe, which is another reason for shipping companies to raise freight.