The new tariff structure to be implemented at Chattogram port from October 15 could cause severe economic fallouts, such as undermining Bangladesh’s trade competitiveness in global markets, according to the Bangladesh Shipping Agents Association (BSAA).
Against this backdrop, the BSAA on Sunday formally appealed to the Ministry of Shipping and Chattogram Port Authority (CPA), urging to review the tariff hike and its abrupt implementation timeline.
In a letter signed by BSAA Chairman Syed Mohammad Arif, the association expressed “profound concern” over the new tariff structure. It said the planned tariff hikes are not only steep, but also commercially unsustainable.
As an example, the BSAA pointed out that the tug hire for a 190-meter vessel will jump from $2,907 (including VAT) to $15,709 under the revised tariff, indicating an increase of more than 500 percent.
“This drastic escalation far exceeds any fair or reasonable adjustment,” it said, adding that most CPA tariff items are direct out-of-pocket expenses borne by shipping lines.
The letter also underscored that tariff adjustments have historically been aligned with currency fluctuations, given that 25 of the 60 major tariff heads are denominated in US dollars.
As such, the BSAA argued that natural adjustments have already occurred as the US dollar rate when the existing tariff regime was introduced in 1986 was Tk 30-32 while today’s rate exceeds Tk 120.
And although the CPA recently deferred the effective date to October 15, the BSAA termed the one-month extension “wholly inadequate”.
It argued that global shipping contracts and budgets are set months in advance, requiring at least six to twelve months’ notice for a revision of this scale.
The BSAA pointed out that if the new tariff structure is imposed without reconsideration, international shipping lines may divert their vessels away from Chattogram in favour of other regional ports.
Besides, it will increase the cost of trade, burdening businesses with higher import bills while reducing the price competitiveness of exporters.
The BSAA further informed that the overseas principals of local shipping agents have already voiced opposition to the new tariffs.
The BSAA proposed a more balanced approach, urging authorities to limit the tariff hike to 10-15 percent and implement the revision in phases with a six-to-twelve-month notice period.
This would allow the global shipping community time to adjust, it said.
In his concluding remarks, the BSAA Chairman stressed that a pragmatic review is essential for protecting Bangladesh’s foreign trade and broader economic interests.
