KCCI urges terminal operators, shipping lines to share demurrage costs with businesses

January 30, 2023 (MLN): The terminal operators and shipping lines are urged to share the burden of heavy demurrage and detention charges with the business community, President Karachi Chamber of Commerce & Industry (KCCI) Mohammed Tariq Yousuf said.

“The thousands of stranded containers could be released at the earliest which would lead to normalizing almost stagnant trade, industrial and economic activities”, he added.

The President appreciated the spirit shown by Karachi Port Trust (KPT) and Port Qasim Authority (PQA) by waiving demurrage charges with businesses.

“Around 5% to 10% containers were stuck at the state-owned KPT and PQA while the rest of 90% containers were lying at the private terminals who have already been requested by the government to relinquish their demurrage charges”, the statement issued by KCCI Chief.

He further stressed that shipping lines must also give some relaxation in detention charges so that the hardships being faced by business community during the ongoing difficult times could be minimized.

“We fully understand that private terminals and shipping lines are also businesses which are operating at a very hefty cost to make earnings in an extremely challenging environment but it was not necessary to generate maximum profits all the time”, he highlighted.

KCCI Chief added, “It is neither the business community’s nor the terminal operators or shipping lines fault but we all must realize the gravity of the situation as our country is facing severe foreign reserves crises and a battle for survival is currently underway so we all need to work collectively and share each other’s burden during these difficult times so that businesses and the economy stay afloat.”

He stressed that the government should also force shipping lines and terminal operators to give one-time waivers in demurrage and detention charges as they must understand that this amount was coming to them as extra profit.

“One has to realize that this money would not have been billed in normal circumstances, therefore, they should forgo it and relief has to be given as in many cases, the value of goods inside the container is less than these charges”, he noted. 

President KCCI further commented that the disaster being witnessed at the ports was purely an outcome of ill-considered policies implemented hastily without carrying out any consultation with stakeholders.

“The government must learn from mistakes and accordingly take steps in consultation with stakeholders so that such occurrences could be avoided in the future”, he said.

He hoped that the terminal operators and shipping lines would announce the required relief in terms of waiver in demurrage and detention charges for the perturbed members of the business community at the earliest which would be widely welcomed.

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