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  • News Desk
  • Jan 30th, 2010
  • Comments Off on Controlling unjustified increase in port charges: ministry mulling setting up Srab
Ministry of Port and Shipping is contemplating constituting Shipping Rate Advisory Board (Srab) to control unjustified increase in port charges by shipping agents and freight forwarders. The board would be constituted under the Merchant Shipping Ordinance (MSO) after necessary statutory amendments, informed sources revealed to Business Recorder here on Friday.

Sources further revealed that Ports and Shipping Ministry held a meeting chaired by the Secretary in which it was deliberated to constitute SRAB to rationalise the port charges which the shipping agents and forwarders increase on their own without consulting with the government.

Sources maintained that a similar step was taken in 2007 but the Shipping agents took a stay order on the action as there was no law under which these could be controlled by the government. Shipping companies had unilaterally imposed Terminal Handling Charges (THC) amounting to 160 dollar per consignment effective from November 1, 2009. In addition shipping companies had also imposed another charge of 60 dollar per consignment and had increased R&R prices from current month of January.

Recently the Pakistan Fisheries Exporters Association (PFEA) had conveyed their concerns to Ministry of Ports and Shipping and Commerce Ministry requesting action against the shipping companies over unimpeded increase in ports charges. In addition, Ministry of Commerce had requested the Federal Board of Revenue (FBR) to take action against shipping companies over the increase in charges that have made fisheries exports uncompetitive in the international market.

The Federal Board of Revenue (FBR) and the Ministry of Port and Shipping have also decided to constitute a "Local Shipping Rates Advisory Committee" to resolve the issues of seaport charges, containers guarantees and terminal handling charges of shipping lines, shipping agents association, freight forwarders and port terminal operators.

The issues/problems raised by the trade regarding seaport charges, shipping lines free day, containers guarantees, D/O charges, Bill of Lading (B/L) issues and terminal handling charges pertaining to shipping line, shipping agents association, freight forwarders and Port Terminal Operators need to be addressed by the Ports and Shipping Ministry in consultation with relevant departments/organisations, including FBR.

Sources pointed out that the shipping agents and freight forwarders are licensed by FBR, but the relevant Ministry to control their activities is the Ministry of Ports and Shipping, which has no legal power to register and control them, for which amendments in Merchant Shipping Ordinance was essential.

Copyright Business Recorder, 2010


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