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Tariff turmoil: Stalemate continues despite halt to prime movers’ protest

Tariff turmoil: Stalemate continues despite halt to prime movers’ protest
Chittagong Port. Photo: Collected
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Despite the suspension of the goods transport strike, operational paralysis at Bangladesh’s main seaport continues, with import and export activities still largely disrupted. The unrest stems from the recent implementation of a 41 percent tariff hike at Chattogram port, which sparked widespread agitation among traders, transport owners, workers and port users.

The situation has resulted in the near-total collapse of cargo movement. And even though the Chattogram Port Authority (CPA) suspended the newly increased vehicle entry fee, it remains unable to act on the broader tariff increases in port services.

The CPA says the new rates were implemented under a government gazette, leaving the final decision to the shipping ministry.

Tariff shock triggers unrest

The CPA introduced the revised tariff structure on October 15, marking the first major adjustment in more than four decades. Under the new structure, entry fees for vehicles increased from Tk 57.50 to Tk 230, alongside hikes across various port services.

The abrupt increases drew swift backlash from prime mover operators, freight forwarders, clearing and forwarding agents and exporters – many of whom warned of a “complete port shutdown” if the tariff structure is not reviewed within a week.

The transport owners halted cargo movement to protest the fee hike, resulting in a sharp decline in container deliveries to and from the port. Industry insiders say the strike’s impact was immediate and severe, paralysing the flow of goods to export-oriented industries and import-dependent sectors.

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Export chain collapses as ships leave empty

The consequences of the port standstill have rippled through the export chain. On Sunday, six container vessels departed Chattogram port without carrying export cargo as containers from private inland container depots (ICDs) failed to arrive due to the transport strike.

According to CPA sources, ships from the NCT and CCT, GCB terminals left for destinations including China, Singapore, Malaysia and Colombo with empty slots meant to carry approximately 800 export containers.

The MV Malti Bay sailed for Malaysia’s West Port without its scheduled 265 TEU of export goods. The MV Inter Asia Forward left for Ningbo, China, empty of its planned 38 TEUs. Similarly, MD Kavya 2 departed for Singapore without 105 TEUs, and MD Resilience sailed for Colombo without 170 TEUs. Another vessel, MSC Siging, had been booked to carry 121 TEUs, but 64 of those containers never reached the port by sailing time.

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The disruption has alarmed exporters, who fear that shipment delays could cause losses and damage Bangladesh’s reputation among international buyers. Goods destined for Europe and North America via transshipment ports are now at risk of missing scheduled deliveries, threatening crucial apparel exports and supply chain commitments.

Exporters’ have warned that the continuing standoff could have a cascading effect on Bangladesh’s export earnings if not resolved promptly. “Delays in export shipments can lead to order cancellations, especially in the garment sector, where delivery schedules are strict,” said one exporter.

2,000 export containers stuck in a day

Data from the Bangladesh Inland Container Depot Association (BICDA) paints a grim picture. Typically, around 2,200 TEUs of export containers are transported daily from 21 private depots to Chittagong Port. But between 8 a.m. Saturday and 8 a.m. Sunday, only 120 containers made it through.

“As a result, roughly 2,000 export containers failed to reach the port in just one day,” said Ruhul Amin Sikder, secretary general of BICDA.

On the import side, where about 1,000 containers are usually transported daily from the port to private depots, only 100 containers moved on Saturday – reflecting a near-total disruption of port logistics.

Strike suspended after meeting, but confusion remains

To ease tensions, the CPA held a crucial meeting on Sunday with representatives of prime mover truck owners and transport workers, chaired by CPA Chairman SM Moniruzzaman.

Following the discussions, the port authority announced the suspension of the increased vehicle entry fee, reverting it temporarily to the previous rate of Tk 57.50. Consequently, transport owners and workers agreed to withdraw their strike that afternoon.

“In the meeting with cargo transport owners and workers, we decided to suspend the increased vehicle entry fee for the time being,” said CPA Secretary Md Omar Faruq.

“Since the tariff changes were issued through a gazette, the final decision now rests with the government,” he added.

However, Faruq refrained from commenting on traders’ threats to shut down port operations if the wider tariff increases are not reviewed within a week.

Uncertainty over tariff standoff

While the suspension of the entry fee increase brought temporary relief, the deeper problem remains unresolved. The CPA insists that it cannot alter gazetted tariffs without government authorization, while business leaders argue that the new rates are excessive and will raise overall trade costs.

The C&F agents’ association, which had joined the protest by observing a four-hour strike on Sunday morning, has yet to make a final decision on whether to continue its program.

Mosharraf Hossain Bhuiyan, secretary of the Chittagong C&F Agents’ Employees Association, said they are waiting for the port authority’s official decision.

“We have not yet decided whether Monday’s four-hour strike will be withdrawn or extended,” he added.

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