Pakistan: Post-strike congestion at Karachi port drives up freight costs, hurts trade

Karachi [Pakistan], December 26 : The flow of import and export containers at various terminals in Karachi Port has not returned to its usual state, even after a week following the conclusion of the goods transporters' 10-day strike, as reported by The Express Tribune.

Sheikh Waqas Anjum, the General Secretary of the Karachi Customs Agents Association, noted that the arrival of numerous consignments that were stranded at the port during the strike onto the city roads has revealed significant deficiencies in the traffic management system.

With the surge in cargo trucks, traffic congestion not only intensified on the roads surrounding the port but also reached critical levels on major routes with heavy traffic, such as Keamari, Gulbai, and Mauripur, according to The Express Tribune report.

Even after a week since the strike ended, the Karachi city administration has not been able to effectively manage the flow of traffic.

Anjum remarked that accessing the largest terminal, South Asia Pakistan Terminals (SAPT), for the pick-up and drop-off of goods has become exceedingly challenging. He further mentioned that right after the strike concluded, there was an unusually sharp rise in the demand for transport, resulting in a shortage of cargo trucks within the city.

Consequently, the cost for transporting import and export goods by truck within the city has surged from PKR 20,000-30,000 to as much as PKR 50,000-60,000.

He added that the delays in delivering import containers from the various terminals at the ports have burdened the trade sector with substantial demurrage and detention fees.

The increase in demurrage and detention charges, along with the recent steep rise in freight rates, has contributed to a notable escalation in overall business expenses, as highlighted by The Express Tribune report.

The Karachi Customs Agents Association has called upon transporters to act in the public interest by offering trucks to the trade sector at mutually agreed rates to ensure a steady supply of goods, according to The Express Tribune.

Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor