Ctg Port
Surcharge costs country Tk 100cr in 2 months
Rafiq Hasan
Additional surcharge on export and import cargoes due to lengthy container handling at Chittagong port cost the country around Tk 100 crore in two months. The Singapore-based feeder operators realised the money as additional surcharge from all Chittagong-bound export and import containers from June 5 to July 31, sources said. On June 5, the feeder operators started charging $130 as surcharge on each twenty equivalent units (TEUs) and 45,000 containers loaded with TEUs had to pay the surcharge in June and 56,000 in July. The surcharge was realised only from loaded containers. The feeder operators, however, are now thinking of withdrawal of surcharge, sources said. "We had to impose the surcharge as we had been suffering losses due to long congestion at the Chittagong port," said Jamal Uddin Quader Chowdhury, managing director of QC Shipping, a major feeder operator. Such surcharge is nothing new in shipping business, he said, adding that there is a peak season surcharge of $350 per TEUs in New York port. Holding the Chittagong Port Authority responsible for failure to handle containers efficiently and creating congestion at the port, he said the feeder operators had also imposed such surcharge in 1998-99. Jamal also said they realised the additional amount from the main line operators (MLOs) and not from any local businessmen. In the case of garment export the buyer had to pay the surcharge as the LCs are open on Free on Board (FOB) basis, he added. Ninety-nine per cent of feeder operators realised the surcharge, the QC Shipping managing director said, adding that they would withdraw the surcharge when the congestion eases. The ship owners had given one month's ultimatum on May 5 and started realising the surcharge on June 5. There are 48 feeder vessels operating between Chittagong, Singapore and other connecting ports. Among the five major players, only HRC is owned by a Bangladeshi businessman. The rest are operating either on behalf of foreign companies or on the basis of ship charter, sources said. The container ship congestion at the Chittagong port began in October last year as the number of feeder vessels increased to 48 from 29 earlier following an upward trend in the country's export and import. This year's export is showing a tremendous growth of 21 per cent over the last year. The growth in import volume is also above 15 per cent. As the Chittagong port failed to cope with the tremendous growth in export and import business, the container carrying ships had to wait more than a week at the outer anchorage before getting berthing permission. Per day waiting loss of a container ship stood at $5,000 to $10,000 and the operators imposed additional surcharge to reduce the congestion loss. The Chittagong Port Authority hopes that the situation will improve following commissioning of two new berthing terminals at the under-construction New Mooring container terminal in October this year.
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