Shipping agents seek 3-month delay in vessel cap

The Bangladesh Shipping Agents Association (BSAA) has urged the Chittagong Port Authority (CPA) to postpone a planned reduction in the number of container vessels permitted to call at the port, warning that an abrupt cut could disrupt foreign trade and push up freight rates.

In a letter to the CPA's deputy conservator on Tuesday, BSAA Chairman Syed Mohammad Arif requested a three-month observation period before any cap is enforced.

"A sudden decrease in the number of vessels will lead to a sharp rise in freight rates and could result in surcharges by main line operators (MLOs)," Arif wrote.

The move comes amid growing tensions between port officials and shipping agents over how to address severe berth congestion and yard overflow that have left vessels stranded for up to 11 days at the outer anchorage.

The CPA recently moved to reduce the number of permitted vessels from 118 to 103, citing operational backlogs, extended turnaround times, and longer queues offshore.

In a meeting with BSAA leaders on July 20, they argued that when only 96 vessels were authorised earlier this year, delays were minimal. The number later rose to 118 through ad-hoc approvals, which the CPA claims contributed to the current crisis.

But the BSAA says yard congestion, not vessel count, is to blame.

In his letter, Arif attributed the backlog to a combination of factors, including a complete pen-down strike by customs officials, a remarkable 66 holidays in the last 6 months, a 'go-slow' approach by berth operators in the first quarter due to price hikes, frequent breakdowns of container handling equipment, and a strike by prime mover operators.

Between February and June, the actual number of vessels that sailed per month was often below 118, Arif noted, challenging the CPA's assertion that an excessive number of vessel approvals caused the delays.

An immediate cut would lead to a spike in freight rates and possible surcharges by main line operators, Arif said, warning that a 15-vessel reduction could affect around 30,000 TEUs of monthly trade and risk deterring global carriers from including Chattogram in their regular rotations.

"All MLOs have engaged their vessels as per the prescribed schedule with different ports of the world. So, a decrease in the number of vessels at Chattogram Port will directly create a negative impact on the pre-scheduled movement with ports of different countries," the BSAA chairman stated.

Exclusion of any vessels from regular voyages to Bangladesh would not be reinstated, and MLOs may lose interest in maintaining regular voyages of those vessels to Bangladesh, he said.

He further cautioned that once vessels are excluded from Bangladesh routes, they may not be reinstated, posing long-term risks to the country's trade, especially its key garment exports.

Talking to The Daily Star, the BSAA chairman said the CPA should take steps to clear yard congestion by speeding up delivery, which would help improve the situation gradually.

Meanwhile, the CPA had asked the BSAA to submit a list of 15 vessels to be cut from the approved roster by July 27. After the association failed to meet the deadline, a reminder letter was issued on Tuesday.

As of July 30, the port's container yards were operating at 77 percent capacity, with over 41,000 TEUs stored—well above the optimal level of 60 percent needed for smooth operations, according to CPA data.