Air Freight Charges For Mango Exports

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Abbas Ali
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Air Freight Charges For Mango Exports

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By Kashif Hussain
May 13, 2010

KARACHI:
Local airlines, including the Pakistan International Airlines (PIA), and shipping companies have not yet announced freight charges for mango exports, putting in jeopardy plans to kick off shipments from May 15.

According to exporters, any delay in exports will cause a loss of millions of rupees and give Pakistan’s competitors an edge in the international market. Usually, freight charges are announced two weeks prior to the commencement of exports and the national carrier takes the lead, while others decide in the light of rates announced by PIA. However, despite the government’s approval to start mango exports from May 15 this year, the PIA has not yet announced freight rates, which will delay exports of Pakistani varieties.

Mango crop matured early this season because of high temperature and the exporters got permission to start exports five days prior to the date set by the commerce ministry. However, the exporters are facing problems in quoting cost and freight (C&F) prices to foreign buyers because of uncertainty over freight charges. Export deals could not be finalised despite receiving heavy orders, the exporters said. All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association Chairman Waheed Ahmed told The Express Tribune that the PIA must announce freight charges immediately to facilitate timely start of mango exports.

He said 30 per cent mango exports were made through air transport and major buyers included Europe, Canada, the Far East, Singapore, Malaysia, Kuwait, Hong Kong and the UAE. The association appealed to the commerce ministry, the Pakistan Horticulture Development and Export Board and the Trade Development Authority to ask PIA to announce freight rates so that sale deals could be finalised with foreign buyers.

Source: tribune.com.pk
Last edited by Abbas Ali on Wed May 19, 2010 10:04 am, edited 1 time in total.
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Re: Freight Charges For Mango Not Yet Announced

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High freight charges: mango export target may not be achieved: PFVA

RECORDER REPORT

KARACHI (May 19 2010):
The target set for mango export may not be achieved this year as various airlines have increased the freight charges for different destinations. This was stated by Chairman All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA), Waheed Ahmed while addressing a press conference on freight charges on mango export here at a local hotel on Tuesday.

"As the private airlines have declared high increase in freight rates, making the export of mango highly competitive, we fear that the export target of 150,000 tons set by the government seems difficult to achieve," he said. Emirates and Etihad Airlines have increased the freight charges between 47 to 60 percent, PFVA Chairman said adding that this would hamper the rate of exports to Europe and other Western countries.

According to the recently announced rates, Emirates Airline, which was charging Rs 111 per kg for mango export to United Kingdom (UK) in 2009, has now decided to charge Rs 180 per kg for the same destination making almost 62 percent increase in the rate, he said.

Waheed said Emirates has also increased the freight charges for mango export to EU by 56.5 percent, while Ettihad Airlines has declared 47 percent increase in the export rate to UK. He, however, praised that Pakistan International Airlines (PIA) has fixed reasonable rates for the mango export to UK during this season. He also requested the management of PIA to consider freight for Middle East.

On the other hand the same airlines, he said, have fixed comparatively less freight rate for mango export from India - the main competitor of Pakistan in the international markets - to the same destinations. "Emirate Airlines is lifting cargo from Mumbai for Pak Rs 115/kg whereas from Pakistani exporters it is charging Rs 180/kg for the same destination. Keeping in view the discriminatory attitude of Emirates airlines, exporters have decided to boycott the airline," he added.

The PFVA Chairman also requested the Ministry of Commerce for shifting the head office of the Pakistan Horticulture Development Export Company (PHDEC) from Lahore to Karachi as the major stake holders like exporters of fresh fruits and vegetables, quarantine department, Trade Development Authority of Pakistan (TDAP), all banks collecting export proceeds, custom department and ports are in the city. He further said the airlines are also based in Karachi but the departments established for facilitation of the exporters are based in Lahore, which have yet to prove its significance.

Source: www.brecorder.com

PFVA announces to boycott Emirates Airlines and Etihad Airways

Wednesday, May 19, 2010

KARACHI:
The Pakistan Fruits and Vegetables Association (PFVA) on Tuesday announced to boycott Emirates Airlines and Etihad Airlines following an increase of 76 per cent and 47 per cent, respectively in the freight rates for mango to the European Union member states and the UK. Addressing a press conference, Waheed Ahmed, Chairman, Pakistan Fruits and Vegetables Association, Mohammad Shahzad Shaikh and others said that the airlines had declared exorbitant freight rates, which made mango export highly competitive. “We fear that the target of 150,000 tons mango export set by the government seems difficult to achieve,” they said.

Emirates was lifting cargo from Mumbai for Pakistani Rs115 per kilogram, whereas from Pakistani exporters it was charging Rs180 per kilogram for the same destination.

They appreciated Pakistan International Airlines (PIA) for enhancing the freight rates for Britain by 9 per cent to Rs112.4 per kilogram from Rs103 per kilogram last year.

Services of Emirates were far better than the national flag carrier, but, due to increased rates the exporters are finding it difficult to compete in the EU markets, they said.

Emirates lifted almost 50 per cent of around 20,000 tons mango exports to the EU member states, they said, adding that due to higher rates they are forced to look for other airlines.

The leaders of the association demanded that the head office of PHDEC should be shifted to Karachi as head offices of all freight companies and ports were located here and 95 per cent exporters were based in Karachi.

Talking about new induction in the association, they said that the membership of Pakistan Fruits and Vegetables Association should be made mandatory for all fruit and vegetable exporters and they should be provided six per cent research and development support.

Source: The News
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