Feud over container handling rates disrupts Ctg port operations
Container handling at six jetties of Chattogram port has slowed recently due to berth operators' non-cooperation in completing essential documentation.
The disruption stems from a long-standing conflict between shipping agents and berth operators over raising onboard container handling charges.
These berth operators have been managing the six container jetties at the port's oldest terminal since 2007, the General Cargo Berth (GCB), where geared vessels are handled.
Shipping agents currently pay Tk 559.53 per container as onboard container handling charge to these operators for loading and unloading activities.
Berth operators have proposed raising this fee for months, a move opposed by the shipping agents.
Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association (BSAA), termed the proposed hike "illogical" in a letter to the member for harbour of the Chittagong Port Authority (CPA) on December 19 last year.
The situation escalated on January 4, when berth operators reportedly began non-cooperation in documentation processes, coinciding with the berthing of two vessels, MV San Pedro and MV JT Glory, at the GCB.
Local shipping agents for these vessels alleged that berth operators stopped sending export loading plans to private off-docks, processing import discharge and export permissions from the CPA's shipping section.
These actions disrupted operational activities, as off-docks require export loading schedules to send containers to vessels.
Subsequently, several other vessels reportedly faced similar issues.
Berth operators issued letters to shipping agents and vessel operators on January 6, demanding a $5 increase in the current onboard handling rate per container.
Fazle Ekram Chowdhury, president of the Berth Operators, Ship-Handling Operators, and Terminal Operators' Owners' Association, defended the fee hike proposal, adding that berth operators had not increased the rate since 2007, despite rising operational costs, wages, and other expenses.
He also said that while document processing is not part of the berth operators' official responsibilities, they have been performing these tasks for years on behalf of the shipping agents.
Ekram denied allegations of operational disruptions, saying that vessel handling operations continued smoothly and that berth operators were extending their usual services.
However, shipping agents claim otherwise.
They said they had deployed their staff to handle documentation processes amid the non-cooperation.
Bangladesh Shipping Agents Association (BSAA) Chairman Syed Mohammad Arif said berth operators have been increasing charges annually by 10 percent since 2016 on 40 percent of the total onboard handling charge.
The charge rose from Tk 409 per container in 2016 to Tk 559.53 per container, he added.
In a recent letter to the CPA, the BSAA said such annual increases without a gazette notification are illogical and were based on a verbal direction from then-shipping minister Shahjahan Khan.
Fazle Ekram stated that the 10 percent annual increase applies only to the 40 percent of charges covering labour costs.
He added that since 2007, there has been no increase in the remaining 60 percent of charges, which cover equipment operation, maintenance, safety gear, staff attire, and documentation costs.
CPA Secretary Md Omar Faruk said that CPA officials have already held meetings with the stakeholders to address the issue, highlighting the need for coordinated efforts to resolve the matter and ensure smooth operations.
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