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posted by:
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Mar 8, 2017
Sea Cargo Ship

No more bookings for coming three months has turned the situation tight

Air cargo from United Kingdom to Pakistan will observe expected increase as a known cargo company Maersk stopped making bookings for Sea Ship Cargo from Europe to Asia. This sea good transportation line has huge capacity and the rest of companies could not replace it as they do not have enough resources to become a substitute for the services of aforesaid cargo company.

This would directly result in more air transport of goods to that region though cost of imports would become really high but prolongation of such situation would leave no other option to the traders. This blocking of booking will last till next few weeks but there is possibility of review on March 13. The reason behind this was too many orders from north Europe to Asia and to manage it immediate refusal was opted.

Capacity of Cargo Companies

The problem of capacity is not only with the mentioned company but with other in the business as well. The growth of progressive economies around the globe has created that potential and to meet the needs of these nations already present arrangements become insufficient.

Factory closure is not an option so they would move to air freight. This difficulty is challenging only for those are sending machinery and goods Cargo from UK to Pakistan.

The recent boom is very much like of 2013 said by Dubai-based cargo expert. Main export lines of England are also not accepting the responsibility to cater requirements of that route so prevailing situation is not encouraging for time bound orders.

Waste Export from UK is suffering

The main problem has been with the scrap exporters as they have always been in search of low rates. And they would be hit at first as volume of their freight is big but value does not match the size.

When the booking of valuables is available with higher margins and circumstances are tight there will be least possibility of finding space for waste exports and they would never afford to send undervalued items through expensive means. The rates are soaring at the moment and it has been observed by traders for one month.

Material for recycling is also transported to china and same is case with it as rates per volume unite has increased but this export would not suffer as hike in price has been absorbed.

Imported goods set to become expensive

Finished goods and items of high value would become even more expensive as freight rates are on the rise. But with this there is possibility of decline in demand of imported goods in developing countries. And this shrinking would act as a balancing force to create equilibrium of demand and supply of services in this sector.

The other possibility is more cargo to Pakistan shipping companies to offer services at competitive prices so the charges become normal once again for different businesses. Whatever would be the outcome of this present development the traders right now are facing challenge of hike in cost of delivering their products to newly explored markets of the world.

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