The cost of transporting containerized cargo around the world, including Pakistan, has risen by up to 700 percent as a result of an abnormal surge in imports following the partial reopening of global economies following the Covid-19 pandemic.
The increase in foreign freight charges for sea, rail, and air routes has partially offset the positive impact of government incentives for certain imports during the pandemic, and may result in imported inflation in the country.
The government may ask foreign shipping companies to rationalize freight charges during these testing periods in order to keep the situation under control. According to some analysts, freight rates could return to pre-Covid levels in four to six months.
“International freight charges have risen by up to 500-700 percent in the last few months,” said Malik Moin, former chairman of the Pakistan International Freight Forwarders Association.
He further stated that freight charges for cargo in a 20-foot container arriving from China to Pakistan have risen to $2,000-3,000, up from about $700 in June 2020 and before.
