Home »Cotton and Textiles » Pakistan » Goods transporters’ strike: textile exporters fear cancellation of huge foreign orders

  • News Desk
  • Dec 11th, 2012
  • Comments Off on Goods transporters’ strike: textile exporters fear cancellation of huge foreign orders
Textile exporters fear cancellation of huge foreign orders due to the United Goods Transporters Alliance (UGTA) strike, which would not only result in huge losses to the exporters, but also to the national exchequer. About 10,000 containers have been held up following the UGTA's strike, announced on December 5, 2012 against the on-going harassment by the bhattha mafia and rampant kidnapping of drivers.

This was revealed in a letter written by Javed Bilwani Chairman Pakistan Hosiery Manufacturers and Exporters Association (PHMA), to Makhdoom Shahabuddin Federal Minister for Textile Industry. PHMA approached the Minister for remedial measures to ensure the early resolution of the UGTA's issues so that the strike is immediately called off. If the strike prolongs further, this would lead to great loss to the exporters, fearing cancellation of vital orders maintained the latter.

The strike has crippled exports which are the lifeline and backbone of the country's' economy. A large number of exporters had shipments ready for the last loading day (Thursday and Friday), besides many export consignments due to be shipped as per the deadline given by the foreign buyers, could not reach the ports in time, resulting in the vessel sailing away without the consignment. This would ultimately have to be sent by Air incurring heavy airfreight costs. It was further maintained that a vessel takes approximately 400 containers of 40 feet, while some take 800 containers ie three vessels could take 2000 containers. Freight per 40 feet container is approximately $3500, while if the goods are sent by air, the airfreight would be around $25000 to $30000. The textile goods in a container are worth approximately $100,000, while the net profit on the same to the exporters is $5000 to $7000. If an exporter airfreights these goods, he would not only lose all his profit, but he will have to pay $20000 to $25000 additional.

Copyright Business Recorder, 2012


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