Pakistani fruit shippers appeal for subsidies as reefer rates rocket
PAKISTANI fruit exporters have appealed for state freight subsidies on exports of kinnow, an easy-peel orange-like fruit, after carriers increased reefer rates US$1,500 per FEU from January, reports Karachi's News International.
"The Ministry of Commerce should grant a subsidy on exports of kinnow after shipping companies are to increase freight charges, keeping in view the abnormal growth in costs," said Harvest Tradings CEO Ahmad Jawad.
Freight to Malaysia will increase to $3,400 per FEU after the addition of the $1,500 reefer FEU charge. Freight to Jeddah will rise to $3,600 FEU in addition to the $1,500 existing charge, said Mr Jawad.
Kinnow exports to Russia will pay an additional $500 per FEU because of a mandatory charge for a recently required certificate needed by fruit exporters, a measure imposed by Russian authorities after a recent visit to Pakistan. Pakistan exports $40 million to $50 million a year of kinnow.
Mr Jawad said the government should pay 50 per cent freight charges to the shipping lines as he said happened in India, or it should issue directives to the shipping lines to lower rates.
Exports of kinnow have already been badly hit by the recent 11-day national truckers strike. "The increase in freight charges will prove another suffering for kinnow exports," he said.
"The strike by goods transport carriers has resulted in lowering kinnow exports by around 10 per cent this year [July 2012 to June 2013]. Exporters may export around 180,000 tons of kinnow this year against a set target of 200,000 tons," he said.
Mr Jawad said this year's production of kinnow was 20 per cent lower at 1.8 million tons from two million tons last year, adding that last year, Pakistan exported 225,000 tons citrus fruit against a target of 300,000 tons.
Despite restoration of normal trucking, it would take around 10 days for normality to return, he said, adding that kinnow processing factories and orchards in Sargodha district are over-supplied as owners try to find ways to preserve their produce.
PAKISTANI fruit exporters have appealed for state freight subsidies on exports of kinnow, an easy-peel orange-like fruit, after carriers increased reefer rates US$1,500 per FEU from January, reports Karachi's News International.
"The Ministry of Commerce should grant a subsidy on exports of kinnow after shipping companies are to increase freight charges, keeping in view the abnormal growth in costs," said Harvest Tradings CEO Ahmad Jawad.
Freight to Malaysia will increase to $3,400 per FEU after the addition of the $1,500 reefer FEU charge. Freight to Jeddah will rise to $3,600 FEU in addition to the $1,500 existing charge, said Mr Jawad.
Kinnow exports to Russia will pay an additional $500 per FEU because of a mandatory charge for a recently required certificate needed by fruit exporters, a measure imposed by Russian authorities after a recent visit to Pakistan. Pakistan exports $40 million to $50 million a year of kinnow.
Mr Jawad said the government should pay 50 per cent freight charges to the shipping lines as he said happened in India, or it should issue directives to the shipping lines to lower rates.
Exports of kinnow have already been badly hit by the recent 11-day national truckers strike. "The increase in freight charges will prove another suffering for kinnow exports," he said.
"The strike by goods transport carriers has resulted in lowering kinnow exports by around 10 per cent this year [July 2012 to June 2013]. Exporters may export around 180,000 tons of kinnow this year against a set target of 200,000 tons," he said.
Mr Jawad said this year's production of kinnow was 20 per cent lower at 1.8 million tons from two million tons last year, adding that last year, Pakistan exported 225,000 tons citrus fruit against a target of 300,000 tons.
Despite restoration of normal trucking, it would take around 10 days for normality to return, he said, adding that kinnow processing factories and orchards in Sargodha district are over-supplied as owners try to find ways to preserve their produce.