News / Anger as Chittagong imposes 'unprecedented' tariffs on port services

Carriers are raising shipping costs to and from Chittagong  – an effort to recoup costs following the port authority’s decision to slap a 70% tariff on service charges last month.

CMA CGM said from 26 October, customers could face paying between $45 and $145 for a dry bulk container, up to $245 for out-of-gauge boxes, and up to $305 for containers holding hazardous material, as emergency cost recovery surcharges.

While the French operator may have been first out of the blocks with new fees, the Bangladesh Shipping Agents Association (BSAA) told The Loadstar others were also calculating surcharge rates for users.

Chair Syed Mohammad Arif said the 70% figure was an “average”, and in some cases the cost could be up to 500%. He pointed to tug-hire rates, noting the present price sat at around $2,907; but under Chittagong’s revived tariff structure, this would jump to $15,709.00, “an increase of over 500%”.

“Such a drastic hike is unprecedented, and commercially unsustainable for the national and international shipping industry,” he commented.

“CMA CGM announced an adjustment of tariffs through surcharges, and all other operators are preparing to adjust tariffs to cut loss. Shipowners won’t pay the increased tariffs from their own pockets. They will realise it from the shippers, which will ultimately charge consumers. The higher port and vessel tariffs ultimately will push inflation further up.”

Cognisant of this, the Bangladesh Container Shipping Association (BCSA) said it had raised the issue with government “several times”, seeking reconsideration, but general secretary Shamsuddin Ahmed Chowdhury said no one was listening.

He told The Loadstar: “The government did not pay heed to our plea. We ship operators have no alternatives but to revise charges. The situation has become increasingly unfavourable for shipping lines to continue supporting Bangladesh trade while remaining financially sustainable.

“The tariff increase will impact the entire supply chain.”

Bangladesh importer Alamgir Hossain told The Loadstar the higher port tariff would only serve to increase export-import costs – “the consumers will suffer”, he said.

“The state-run Chittagong port has now turned into a commercial enterprise, from a service provider in the past, only to raise people’s suffering,” Mr Hossain added.