Business

Striking goods carriers disturb export shipments

Textile exporters fear big losses, cancellation of orders.

Our Correspondent February 01, 2013

If the strike was not called off, the exporters will be forced to ship goods by air at a heavy cost. PHOTO: INP/ FILE

FAISALABAD:

As if energy shortages were not enough, textile manufacturers are bracing for another obstacle – a strike by goods transporters – which could also have far-reaching implications.

Talking to the media here on Friday, textile millers expressed the fear that the strike would completely halt export activities besides hurting their manufacturing capacity, eventually leading to loss of billions of rupees worth of export orders.

Pakistan Textile Exporters Association Chairman Asghar Ali and Vice Chairman Muhammad Asif said huge export consignments, which were ready to be shipped as per schedule given by foreign buyers, could not reach ports on time and vessels left without loading the cargo.

If the strike continues, it will lead to big losses to the exporters with cancellation of vital orders, they warned.

Asghar Ali pointed out that the industry was already facing unprecedented energy crisis as there was prolonged outages of electricity and complete shutdown of gas to the industries of Punjab for the last 60 days.

“Over 50% of production capacity is already lying unutilised and the industry is resorting to massive lay-offs throughout the province,” he said.

Muhammad Asif said the goods carriers’ strike would not only hurt shipments of export consignments, but would also disturb import business as importers would be forced to pay demurrage for delay in clearing their cargo from ports. Apart from this, he said, the strike would also affect manufacturing activities at industrial units, which would not get raw material and fuel to run the mills.

The association leaders asked the provincial and federal governments to intervene immediately and resolve the issues of transporters. If the strike was not called off, they said, the exporters will be forced to ship goods by air at a heavy cost.

Published in The Express Tribune, February 2^nd, 2013.

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