Carriers drop Pakistan surcharge

Carriers drop Pakistan surcharge

Major shipping lines operating services between the Indian sub-continent and Europe have withdrawn the additional insurance premium on vessels serving Pakistan.

The India-Pakistan-Bangladesh-Ceylon conference, which controls 80 percent of the trade between the sub-continent and Europe, said that after discussions with international insurance underwriters, the extra risk insurance surcharge, which was $8 per TEU, was eliminated effective July 28 for direct call vessels.

However, the feeder surcharge for cargo relayed via United Arab Emirate ports to west coast India ports and Pakistan is unchanged at $25 per TEU.

IPBCC last reduced the war risk surcharge for calls to Pakistani ports from $16 to $8 a TEU in May.

Separately, IPBCC announced that it is increasing the bunker adjustment factor effective Sept. 1, to $90 a TEU from $80 for full containerload cargo, and to $9 by weight/measure from $8 for less than containerload cargo. The surcharge on break bulk cargo will be 25 percent, up from 23 percent.

- N. Vasuki Rao