News / Chittagong cancels CMA CGM ship permits in storm over 'surcharges'

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Chittagong Port Authority (CPA) has cancelled the licences for seven CMA CGM ships, claiming the line violated rules on surcharges. 

The action was taken after CMA CGM announced its Emergency Cost Recovery Surcharge for 26 October. 

The French carrier said it would charge between $45 and $145 for dry bulk containers, up to $245 for out-of-gauge boxes and up to $305 for hazardous containers to cover the port’s recent tariff hike. 

However, following the port authority’s action, CMA CGM said yesterday it would rebrand the fee as a terminal handling charge, not as a surcharge. 

Ikram Ghazali, MD of CMA CGM Bangladesh, wrote to the CPA chairman: “We have taken measures to cancel this surcharge and the local recovery.” He asked for reinstatement of the licences so it could continue operations. 

However, Omar Faruk, spokesperson for CPA, said: “CMA CGM has violated permission rules, so the licences of seven ships have been cancelled. 

“Reinstating all their licences will take time,” he added, but did concede that the imposition of surcharges to recover costs was not illegal. 

However, in the case of CMA CGM, there was a condition that the line would not impose any extra charges for the seven ships, as their permission was given on ad-hoc basis.

Maersk had told customers: “To continue providing reliable and efficient service, Maersk will be revising the terminal handling charges (OHC/DHC) for all containers to and from Bangladesh, effective 15 October.” The revised charge is between $165 and $460. 

“This adjustment follows the recent tariff revision announced by the Chittagong Port Authority, which has led to an increase in port and operational costs. As a result, Maersk will adjust its freight structure to reflect these higher handling costs.” 

However, as of Thursday, Maersk had not made any announcements about the withdrawal or reversal of the terminal handling charges, despite efforts by the CPA. 

A local source at CMA CGM said the CPA had reinstated licences for three ships, following the withdrawal of the surcharge, and he expected the remaining four permits to be reinstated next month.  

MSC also withdrew a similar surcharge after pressure from the CPA.

Its Port Cost Recovery (PCR) surcharge of between $100 and $200 per teu, to adjust to the new port costs, was due to have been effective from today. MSC declined to comment.