Shahbaz Aslam says reduced war-risk charges may improve raw material imports and exports
LAHORE, Apr 19 /DNA/ — The Pakistan Furniture Council has expressed cautious optimism over the expected easing of shipping and freight costs following improvements in global maritime conditions, saying that the development could provide much-needed relief to the furniture manufacturing and export sector.
In a statement, PFC Director Shahbaz Aslam said that recent signs of reduced disruption in key global shipping routes, including the Strait of Hormuz, are expected to gradually lower war-risk surcharges, emergency bunker adjustments, and freight rate increases imposed by international shipping lines.
He noted that these additional charges had significantly increased the landed cost of imported raw materials such as wood, hardware fittings, adhesives, and upholstery components, directly impacting production costs for local manufacturers. At the same time, exporters have also faced higher logistics expenses, reducing competitiveness in international markets.
Shahbaz Aslam said that if shipping lines begin rolling back war-risk and emergency surcharges in the coming weeks, it would help stabilise input costs for the furniture industry, which relies heavily on imported raw materials. He added that any reduction in freight charges would also improve the sector’s export viability, particularly in regional and Middle Eastern markets.
“The furniture industry has been under pressure due to rising freight costs and unpredictable shipping charges,” he said. “A gradual normalisation of global shipping conditions will provide some breathing space to manufacturers and exporters.”
He pointed out that recent increases in General Rate Increases (GRI), war-risk surcharges, and emergency bunker surcharges had added substantial cost burdens to both imports and exports. In some cases, these charges had raised per-container costs significantly, making it difficult for small and medium manufacturers to maintain stable pricing.
The PFC director said that while global supply chains are beginning to show signs of improvement, it may take time for full stability to return. He noted that industry stakeholders expect a gradual reduction in shipping charges over the next two to three months, depending on how quickly international logistics conditions normalise.
