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Vessel operators using Chittagong seaport have once again urged the government and the port authority to reconsider the newly announced tariff schedule, calling the proposed rate hike "unprecedented" and "commercially unsustainable".
They requested that the increase be limited to between 10 and 15 per cent and implemented in phases, with at least six to 12 months' notice to allow the global shipping community time to adjust their commercial arrangements.
The Bangladesh Shipping Agents Association (BSAA) made the plea in a letter sent on Sunday to the senior secretary of the Ministry of Shipping and the chairman of the Chittagong Port Authority (CPA), just ten days before the new tariff is due to take effect on 15 October, officials confirmed.
In the letter, BSAA Chairman Syed Mohammad Arif expressed "profound concern" about the newly imposed tariff and its "abrupt implementation date."
"The magnitude of the increase, coupled with the insufficient notice period, poses a significant threat to the competitiveness of Chittagong Port and the national economy," he wrote.
To illustrate the scale of the increase, he cited an example from the proposed tariff schedule: the tug hire cost for a 190-metre vessel, currently set at $2,907, will rise to $15,709 -- an increase of more than 500 per cent.
"Such a drastic hike is unprecedented and commercially unsustainable for both national and international shipping," Mr Arif added.
According to the BSAA, the notified tariff schedule reflects an overall increase of nearly 70 per cent compared to the existing rates.
"Such an escalation far exceeds any fair or reasonable adjustment, particularly as most CPA tariff items are direct out-of-pocket expenses borne by shipping lines," the association chairman wrote.
He also noted that, of the 60 tariff items in the CPA's 1986 schedule, 25 major service categories are denominated in US dollars. At that time, the exchange rate stood at around Tk 30-32 per US dollar, compared with more than Tk 120 today.
As a result, he argued, the value of dollar-denominated tariffs has already adjusted automatically over time. "Moreover, the current tariff structure has also been fixed in US dollars," he wrote.
The BSAA pointed out that the new rates will become effective from 15 October, allowing only a one-month grace period from the date the gazette was issued.
This, it argued, is entirely inadequate, as "global shipping contracts and budgets are set months, if not a year, in advance."
"Implementing a tariff increase of this scale without a minimum of six to twelve months' notice will have severe consequences," the association warned.
Mr Arif cautioned that the move could erode Chittagong Port's competitiveness, as foreign shipping principals may be compelled to divert their vessels to other regional ports. This would lead to a decline in vessel calls at Bangladesh's premier seaport.
He further warned that the new tariffs would raise the cost of trade, saying, "These exorbitant costs will inevitably be passed on to consumers, inflating import prices and making Bangladeshi exports less competitive in global markets."
"This will harm both import and export sectors, ultimately affecting the national economy," Mr Arif concluded, urging the authorities to reconsider the new tariff schedule.
syful-islam@outlook.com