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Two major shipping lines which announced Port Cost Recovery (PCR) Surcharge and Emergency Cost Recovery Surcharge to and from Chittagong have backtracked on realising those following the port authority's tough stand, officials say.
They announced the surcharges to adjust the rise in operation costs as the Chittagong Port Authority (CPA) increased port tariffs by around 41 per cent, effective from Wednesday (October 15).
The Mediterranean Shipping Company (MSC) on October 11 announced to impose surcharge between $100 and $200 per twenty-foot equivalent unit (TEU) to adjust the costs, which was supposed to be effective from today.
"Following the recent tariff revision announced by the Chittagong Port Authority and effective as of October 15, 2025, MSC will implement a new Port Cost Recovery (PCR) surcharge," it said in a customer advisory.
The MSC said it would implement the new surcharge in two phases - one effective from October 16 (today) for all shipments to/from Bangladesh from/to all destinations, except the US and Far East.
Also, in the second phase, effective from November 10, the surcharge would be imposed on all shipments to/from the US from/to Bangladesh, it said.
Earlier on October 9, CMA CGM announced an emergency cost recovery surcharge, effective from October 26.
The shipping company said it would realise between $45 and $145 for dry bulk containers, up to $245 for out-of-gauge containers, and up to $305 for hazardous containers to adjust CPA's tariff hike.
However, in the face of the tough stance of the CPA, the MSC on October 13, in a letter to the CPA chairman, said it would not collect any port cost recovery surcharge.
"We would like to clarify and assure you that MSC Bangladesh is not going to implement any surcharge for our valuable clients in Bangladesh. We will continue our business as usual," wrote Borhan Uddin Ahmed, senior general manager of MSC Bangladesh Ltd.
Sources say as the MSC moved to Emergency Cost Recovery Surcharge, the CPA became furious and cancelled licences for its seven vessels that ply to and from the Chittagong port, citing violations of surcharge collection.
"I do acknowledge this letter. As CMA CGM, we have taken measures to cancel this surcharge and the local recovery. Please see attached herewith our circular, which is already published on our website," wrote Ikram Ghazali, managing director of APL Bangladesh (Pvt) Ltd and the local agent of CMA CGM Group, in a letter to the CPA chairman.
However, it said, the surcharge would be collected as Operation Cost Recovery (OCR) from customers in Bangladesh.
"In view of this, please reinstate our licences to continue our cooperation with the CPA and continue to be your second largest customer," he wrote.
Neither CPA spokesperson Omar Faruk, nor officials from the MSC and CMA CGM, could be reached over the phone despite repeated attempts.
syful-islam@outlook.com