Freight rates jump up to 700%
The transportation cost of containerised cargo across the world, including Pakistan, has increased by up to 700% due to an abnormal growth in imports following the reopening of global economies from partial lockdown amid the Covid-19 pandemic.
The surge in international freight charges for sea, rail and air routes has offset the positive impact of incentives provided by the government for some imports during the pandemic and may lead to imported inflation in the country.
To control the situation, the government may ask international shipping companies to rationalise freight charges during these testing times. Some experts believe freight charges may go back to pre-Covid levels in four to six months. “International freight charges have surged by up to 500-700% over the past couple of months,” said Pakistan International Freight Forwarders Association former chairman Malik Moin while talking to The Express Tribune.
Freight rates jump up to 700%
Rise comes on back of growth in imports due to reopening of global economies
Number of top international shipping firms has gone down to 3-4 only as many companies have either been acquired by others or merged to survive during crisis. PHOTO: FILE
KARACHI:
The transportation cost of containerised cargo across the world, including Pakistan, has increased by up to 700% due to an abnormal growth in imports following the reopening of global economies from partial lockdown amid the Covid-19 pandemic.
The surge in international freight charges for sea, rail and air routes has offset the positive impact of incentives provided by the government for some imports during the pandemic and may lead to imported inflation in the country.