October 15: Lack of competition among shipping companies and the importers not being aware of the choices of companies have increased Nepal’s transit costs with third countries. Although quick procedures and technology have been adopted to reduce the burden of extra time and other costs at Indian ports, the cost has not yet been reduced due to the monopoly of the shipping companies.

Nepal’s trade with third countries is almost 40 percent of the total foreign trade.

Out of this, about 10 percent of all trade is done through the air route with the third countries. Mostly, shipping from overseas is done by foreign shipping companies. These companies transport containers to Nepal via the Indian ports of Kolkata and Visakhapatnam.

It is estimated that more than 100,000 containers enter the country annually by sea.

Ashok Kumar Temani, chairman of the Transport and Transit Committee of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) informed that about two dozen shipping companies are involved in the transportation of Nepal's foreign trade.

“Traders and importers have complained that the cost of imports has increased unexpectedly due to the cartel of big companies,” he informed.

It is estimated that the cost of transportation is about 25 percent of the entire valuation of Nepal's foreign trade expenses.