Pakistan weighs container vessel to ease export shipping costs

Pakistan is considering leasing or purchasing a container vessel through its national shipping company to help exporters cut costs amid regional shipping disruptions, Maritime Affairs Minister Muhammad Junaid Anwar Chaudhry said on Thursday.

Why is Pakistan considering a container vessel for exporters?

Exporters told the minister that longer shipping routes have raised freight costs and transit times for Pakistani goods. Pakistan is therefore looking at a vessel run by the Pakistan National Shipping Corporation (PNSC).

The minister said it would only go ahead if enough cargo is available to make it commercially viable.

What did exporters tell the minister?

The proposal was discussed at a meeting between Chaudhry and a delegation of exporters, according to a government statement. The exporters said the disruption has put Pakistani products at a disadvantage compared with those of regional competitors with more direct access to major markets.

The delegation included Shahzad Asghar Ali, chief executive of Style Textile, Benedikt Birner, vice president of global Adidas, and Saqib Rafique, senior director of sourcing operations at Adidas. PNSC CEO Syed Jarar Haider Kazmi joined the meeting online.

Will the PNSC lease or buy a container vessel?

Chaudhry said PNSC could lease or purchase a container vessel for export operations if sufficient cargo was available to ensure its commercial viability. "The availability of the required cargo for the container vessel will have to be ensured," he said.

He formed a working group of officials from the Ministry of Maritime Affairs, PNSC and exporters. The group will examine ways to improve shipping connectivity and reduce costs.

What will the working group do next?

Chaudhry directed exporters to submit proposals to the working group. It will assess the feasibility of operating a dedicated container vessel, as well as other arrangements to facilitate exports.

The exporters agreed to consult other industry representatives and submit recommendations to the working group.