Lebanon Businessnews News
 

Farmers said shipping costs were not lowered
Ministry, transport firms said container shipping best for export, farmers insist on Ro-Ro ferries
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Farmers have refuted the Ministry of Agriculture’s announcement that new affordable rates have been launched for shipping agricultural produce by sea to the Gulf, Egypt, Libya, and Jordan following difficulty faced by farmers in sending their produce overland via Syria.

“This (sea shipping) line has been available for several months,” said Antoine Howayek, president of the Farmers' Association. The Ministry of Agriculture had announced on Tuesday (August 7) that private container shipping companies have agreed to reduce tariffs.

New shipping rates to most Gulf ports range from $3,000 to $3,600 per container, according to the statement. The rate to Jordan and Libya is $3,000 per container, to Port Saeed its $1,500 per container, while for Jeddah its $2,500 per container.

The cost and time needed for delivering shipments via sea have not been altered, according to Howayek: “Prices (mentioned in the statement) are the same prices that shipping companies always charged.”

He said exporters have been using these sea routes for shipments of potatoes and tomatoes for the past few months. “It is not a problem to keep potatoes for three weeks before delivery, but the problem is with transporting seasonal fruits and vegetables,” he said.

Agricultural exports fell by around 20 percent in the first six months of 2012 from the same period last year, according to the Farmers’ Association. Howayek said the best way to boost exports is by hiring RO-RO ferries that can transport containers on trucks.

“Shipments via ferry would be delivered within no more than 42 hours at the same cost as for container shipping,” he said. Howayek said that the government should establish a permanent ferry line between Beirut and Alexandria.

He said the government should also amend some agreements with Egypt to allow drivers to accompany their trucks and containers onboard the ferries instead of taking a plane to meet their trucks at the destination.

The MoA and shipping agencies had earlier said transporting agricultural goods in refrigerated containers via cargo vessels is the most feasible alternative to overland transport through Syria.

George Korban, general manager of CMA-CGM (Lebanon), said RO-RO vessels can only carry a limited number of contaner trucks, 50 to 100, which limits their capacity per trip.

Reported by Rania Ghanem
Date Posted: Aug 08, 2012
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