Exporters face new air cargo surcharges amid rising operational costs

KARACHI: Exporters in Pakistan are grappling with additional financial pressures as major ground handling agents at airports have imposed new ad hoc charges on air cargo shipments. This move comes at a time when exporters are already contending with increased war risk and freight charges linked to ongoing geopolitical instability in the Middle East.

According to official statements, Gerry’s dnata Pakistan has introduced an ad hoc charge of Rs50 per kilogram on export cargo, exclusive of all applicable taxes. The company cited rising operational costs as the reason for this increase. These charges will be collected from the party presenting the cargo at the warehouse prior to acceptance. Exporters or their authorized representatives are also required to provide their National Tax Number (NTN) or Computerized National Identity Card (CNIC) details during the acceptance process.

Similarly, Menzies Ras Pakistan has implemented ad hoc operating charges of Rs25 per kilogram, also excluding applicable taxes, on export cargo. These charges took effect from March 17. The company attributed the increase to a significant rise in fuel prices, which has led to higher costs for transportation, ground support services, and the overall supply chain. Menzies Ras Pakistan described these charges as a temporary operational support measure to address the current cost challenges.

Exporters have expressed concern over these additional charges, noting that they come on top of already elevated costs due to the deteriorating geopolitical situation in the Middle East. The new surcharges are expected to further impact the competitiveness of Pakistani exports in international markets.

Industry representatives have called for a review of these charges, warning that the cumulative effect of increased freight and war risk premiums, along with the newly imposed ad hoc fees, could hamper export growth and affect the country’s trade balance.