Freight transporters spike rates by 26 percent

[Lahore_Real_Estate]

LAHORE: Freight transporters have spiked their transport charges by between 14 and 26 percent during this week, after the government decision to raise the prices of petroleum products between 6.8 to 8.9 percent.
Industry experts have concluded that the increase in POL prices and transport rates would have an adverse impact on the price of all raw materials ramping up prices by perhaps as high as 30 to 35 percent. This would have a massive effect on the profit margins of local manufacturing in the context of both domestic and international terms.
A survey of the Lahore Dry Port and Badami Bagh Truck Stand revealed that cargo conveyors have increased their fares by between Rs 5,000 to Rs 25,000. Fares for the loose cargo have gone up by one and two rupees per kilogram.
Further analysis of available data reveals that freight transporters have increased the price for 40-foot container cargo from Karachi to Lahore by up to Rs 25,000 with the new tariff ramped to between Rs 115,000 and Rs 130,000.
The fare for a 20-foot container cargo has jumped by between Rs 5,000 to Rs 15,000 and has been fixed at Rs 80,000 to Rs 85,000.
Similarly, the fare for a 40-foot containerised cargo from Lahore to Karachi has witnessed an increase ranging from Rs 7,000 to 10,000, with orders being booked at Rs 45,000 to Rs 50,000.
An increase of Rs 5,000 to Rs 7,000 has been recorded in the fare of 20-foot containerised cargo. The fare for 20-foot container from Lahore to Karachi is now verging on Rs 35,000. Pakistan Goods Transport Association General Secretary Nabeel Mahmood Tariq said that POL prices hike had broken the backbone of the transporters. He said that transporters were reluctant to increase fares with business drying up, owing to poor economic conditions.
Tariq said transport sector was already under heavy pressure, citing the massive threat posed by dacoits on the national road network, especially in light of the government’s inaction. He asked the government to withdraw the recent hike in POL prices to preserve commerce and industry.
Speaking to the Pakistan Today, Chairman Trafco Group Tahir Malik blasted the government’s decision, terming it ill-conceived and untimely. He estimated that the price of every industrial raw material would rise by 30 to 35 percent and could compromise the viability of many industrial units.
Responding to a query, he said transporters were merely service providers and it was beyond their capacity to offer services at lower rates.
He added that the increase in diesel price was impacting upon the price of lubricants and other necessary items including tyres. Malik was also of the view that the government should reconsider its policy on petroleum pricing.