| They pointed out that CAF, imposed on all shipments at the rate of 7.3 per cent on the basic freight rate, was unjustified as IPBC did not pass on the benefit when the Indian rupee was strengthening against major currencies. |
| "Earlier there was a single composite freight rate and we were told that CAF had been assimilated within that. Now, the shipping lines have invoked the CAF again," said B R Chandak, vice-president of the East India Shippers' Association (EISA). |
| IPBC serves the trade route between the Indian subcontinent and the UK and Europe. The CAF is being levied on all shipments to Europe from September 1. |
| Exporters said freight rates were already very high due to a surge in demand and non-availability of containers. The number of transhipment ports are experiencing at least one rollover resulting in inordinate delays. |
| Rates to western Mediterranean ports have surged to nearly $2,300 per forty feet containers. Exporters claim that if CAF is imposed over and above that, it will render Indian exports uncompetitive. |
| "We have made a chart of how the rupee has fared against major currencies and tried to relate whether the CAF is justified," said Chandak. |
| He informed the association will take up the matter with IPBC conference soon. |
| Exporters argue that Indian rupee has been strengthening for a long period and it touched about 43 against a dollar but none of the shipping lines passed on the benefit to the shippers. At present the rupee is hovering between 46-47 a dollar mark. |
| "Since the demand is strong and there is shortage of containers, the shipping lines are trying to maximise their return. CAF is just one of the means to do it," they alleged. |
| Some of the important shipping lines who are member of the IPBC Conference are Maersk Sealand, P&O Nedlloyds, Evergreen Marine Corporation among others. |
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