Shipping costs are expected to rise by up to 60% for imports and potentially more for exports, driven by a 41% tariff hike at Chattogram Port, a similar increase in inland container depot (ICD) handling charges, and the upcoming surcharges imposed by shipping lines.
French shipping giant CMA CGM has already implemented an Emergency Cost Recovery Surcharge (ECRS) ranging from $45 to $305 per container, effective October 26.
Around 35 main line operators (MLOs) and 150 non-vessel operating common carriers (NVOCCs) are set to follow with similar cost adjustments as the Chattogram Port Authority (CPA) enforces the new tariff structure starting October 15.
Shipping agents said they have no choice but to pass these higher costs on to customers. However, businesses are worried about the surging shipping costs.
Khairul Alam Sujan, former vice president of the Bangladesh Freight Forwarders Association, Sujan warned that the RMG sector would suffer major setbacks.
“Private ICD handling charges for exports have already risen by 40%. The full impact of port tariffs, surcharges, and ICD charges could increase export logistics costs by more than 60%,” he explained.
As most RMG shipments are priced on a Freight on Board (FOB) basis, Sujan warned that rising shipping costs could lead foreign buyers to reduce their prices or shift to alternative sourcing countries, undermining Bangladesh’s export competitiveness.
30-35 major shipping lines, including MSC, Maersk, CMA CGM, and Hapag-Lloyd, operate container services to and from Bangladesh. Senior officials from several MLOs in Chattogram confirmed to Times of Bangladesh that their head offices are reviewing the tariff hikes.
“We have no choice but to adjust rates in line with the new port tariff,” one official said.
Mahfuzul Haque Shah, former director of the Chattogram Chamber of Commerce and Industry, criticised the government’s decision, saying, “We warned that a 41% tariff hike would hurt businesses and consumers.”
Shah added that inflation, already around 8.5%, is expected to rise further due to this decision.
Shipping agents said that additional surcharges would be collected from C&F agents during cargo handling and passed on to importers, who are likely to increase product prices, affecting consumers directly.
Syed Mohammad Arif, immediate past chairman of the Bangladesh Shipping Agents Association, expressed frustration, saying, “We proposed delaying the tariff hike by six months, but the Ministry of Shipping ignored our request.”
The government issued a gazette notification on September 14 confirming that the tariff hike would take effect on October 15.
Repeated efforts to contact CPA Secretary Md Omar Faruk for comments were unsuccessful.
