LAHORE: The Executive Committee of the Lahore Chamber of Commerce and Industry (LCCI) has expressed grave concern over the critically deteriorating performance of international shipping lines, warning that the situation may cause severe financial losses to Pakistani exporters.
The issue was brought to the forefront during a meeting of the LCCI Executive Committee presided over by LCCI President Mian Abuzar Shad, Senior Vice President Engineer Khalid Usman, and Vice President Shahid Nazir Chaudhry. The concerns were raised by Executive Committee Member Syed Salman Ali, who highlighted the unsustainable practices of shipping companies.
Ali informed the Executive Committee that the primary issue centres on a massive discrepancy between transit times promised by shipping lines at the time of booking and actual delivery times. Exporters are being given commitments of 15-18 days for key destinations such as Jeddah and 35-38 days for North African ports. However, after shipments are dispatched, these timelines are being arbitrarily extended by 10 to 25 days without prior notice or valid explanation.
“This unpredictable delay is crippling for exporters who operate on strict deadlines with their international buyers,” the committee noted.
The LCCI Executive Committee warned of the devastating effects caused by these delays. According to LCCI office-bearers and committee members, the most significant long-term damage is to Pakistan’s reliability as a trading partner. Overseas buyers, frustrated by inconsistent delivery schedules, are reportedly losing confidence and shifting their orders to competing countries including India, Bangladesh, and Vietnam, which offer more predictable logistics.
The exporters are facing serious cash flow problems as payments are delayed until goods are received, tying up capital and making it difficult to finance new orders and raw materials. The situation is further exacerbated by the State Bank of Pakistan, which pressures exporters to ensure the realization of export proceeds within a strict 45-day timeframe—a target that becomes impossible to meet when shipments remain stuck at sea or transshipment ports for weeks beyond the promised delivery date.
The LCCI Executive Committee unanimously declared that the current situation is serious and threatens Pakistan’s export competitiveness. They called for urgent government intervention to safeguard national interests.
The committee demanded the establishment of a strong regulatory authority to oversee the operations of shipping lines. This authority should be tasked with ensuring that carriers adhere to their committed schedules and that goods are reloaded at transit ports within the promised timeframe.
“Without such strict oversight and accountability for shipping lines, Pakistan’s export sector will continue to suffer,” the committee stated.
LCCI President Mian Abuzar Shad emphasized the severity of the situation, declaring it a national trade emergency rather than merely a commercial inconvenience.
“The country is losing hard-earned foreign exchange and the trust of international buyers. The government must step in immediately to regulate this sector and protect Pakistani exporters from these unfair practices,” Shad said.
The LCCI’s warning comes at a critical time when Pakistan is working to boost its export earnings and strengthen its position in global markets. The chamber’s call for regulatory intervention highlights the urgent need for systemic reforms in the shipping and logistics sector to maintain Pakistan’s competitiveness in international trade.
Copyright Business Recorder, 2025
