As per the market sources, the freight forwarders have massively increased the freight cost for imports from Shanghai port as the charges have now exceeded US $ 9,000 for equivalent of 40 feet or EFU container.

The marked increased in freight charges came on the back of blockage of the Suez Canal in 2021, when forwarders kept pace with the rise in prices due to the blockage of the Suez Canal. Since then, freight rates have been on the rise as carriers have no room.

Prior to COVID, shipping a 40-foot equivalent EFU container imported from Shanghai to Karachi used to get book for $ 400, which is now being charged more than $ 9,000 , including a shipment guarantee.

However, the export freight charges from Karachi to Shanghai is US $ 600 due to a shortage of containers in China.

In addition, import and export duties are levied from Southampton (UK) at approximately US $ 3,500 / US $ 7,000, while export duties to Los Angeles (US) are approximately US $ 22,000 per 40ft container.

Even at such high freight rates, it is difficult for forwarders to find jobs with shipping companies due to demand from Chinese trade and congested Los Angeles ports.

According to the carriers, the prevailing prices are the new normal prices, which will remain at these levels for considerable time.

Freight forwarders have abandoned monthly contracts and are now offering contracts for periods ranging from 1 week to 10 days.

Pakistan’s Imports are going to get costly as Pakistan is a net importing country. Major hit is going to be witnessed in Textile Sector where Import of Cotton Yarn in the country is going to get more expensive.

Auto Sector is expected to remain slightly immune to this increase in freight charges, as majority of Auto Companies have Shipment agreements with their Foreign Partners and agreements are renewed annually.

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