Strict checks and action has been stressed by exporters as shipping lines are reported to be fleecing them by making unilateral increases in freight rates.
The shipping companies, however, rejected the allegations as baseless and said that the increase was made due to the addition of General Rate Increase (GRI) and Critical Bunker Charges (CBC) to the agreed freights.
Mian Amin Trading (MATE), a rice exporting firm, accused CIM Shipping of unilaterally demanding US$165 more than the agreed freight of $260 for a 6x20 FCL container.
MATE said the two sides through conversation made on telephones and e-mails agreed that the MATE would pay $260 per container to CIM Shipping for shipment of six containers of rice from Karachi to Colombo.
It said when the MATE's clearing agent went to the shipping company's site for collection of containers, CIM refused to give them the containers at the agreed freight rates and unilaterally demanded $425 per container.
It said the initial transaction was confirmed on phone which was followed up an email dated November 19, giving complete details including agreed rate of $260 per container for reconfirmation.
It said the attitude of the shipping firm is open daylight robbery and blackmailing and it strongly resisted the unlawful and unjustified demand of CIM. It urged the CIM to honour its written and verbal commitments as per the agreement.
It said the unethical practice had left the MATE with no option but to succumb to the blackmailing as it had to honour their contractual obligation to a foreign country and upkeep good name of the country.
Meanwhile, Ali Raza, export manager of CIM Shipping brushed aside the allegations and said the addition was made in the freight rates after the lines had increased the freights. Raza said GRI and CRC were added to the agreed freight as any increase in the freight rates by the lines is unpredictable and can be made anytime.
The CIM had increased its freight rates after an announcement came from Sri Lanka on making a $100 per tonne increase in the freight rates for rice consignments from December 1, MATE claimed. It said CIM wants to exploit the Sri Lankan announcement and are blackmailing the exporters by refusing them to lift the containers at the eleventh hour, it alleged.
It said as international law provides a 20 to 25-days validity in case of any change, increase or decrease, in freight rates the CIM had no authority to implement the change, if any, within a few days of the agreement. The official in the shipping sector also rejected talks of any increase in the international shipping freights in the recent days.
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