Shipping lines riled by Pakistan's move to raise port tariffs

Karachi

SHIPPING companies are threatening to scrap their Pakistan services after the South Asian country increased tariffs at its largest port in a blow to an industry that is already grappling with global overcapacity and low freight rates.

Hyundai Merchant Marine Co is "seriously considering" dropping deployment of larger vessels in Pakistan, the South Korean company wrote in a letter to the Karachi Port Trust, a copy of which was obtained by Bloomberg and confirmed by the firm. Local agents, representing global sea carriers including Maersk Line, the world's biggest container carrier and part of AP Moeller-Maersk A/S, and American President Lines Ltd, say the tariff increase has caused distress among members.