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Feeder operators plying between Chittagong & Singapore mull higher charges

Feeder operators, who ply between Chittagong and Singapore, are considering slapping higher transportation charges against the backdrop of longer stay time within the Bangladesh territory.
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Source: Financial Express

The Chittagong Feeder Trade Committee, a Singapore-based lobby group of feeder vessels operators, conveyed the message to their members.

The committee also updated the Chittagong Port Authority and the Ministry of Shipping on its planned charge hike in a letter, a copy of which has been obtained by the FE.

“Our members cannot continue operations under such difficult conditions, facing increasing costs and compounded by a shortfall of export cargoes due to the COVID-19 pandemic,” the grouping said.

“In order to enable our members to sustain the level of service demanded by the trade, there will be need to recover such increased costs through introduction of some forms of cost recovery,” said the letter.

It noted some 34 vessels were in queue on the outer anchorage as of April 19.

The main seaport has been facing space shortage since March 26 when the country imposed nationwide lockdown to fight the deadly virus.

The consignees are not getting the delivery of their goods as they believe the demand for goods has fallen amid the shutdown, which has been extended until May 05.

Since the industrial sector remained closed, industrial raw materials have also remained lying at the port yards for long.

Usually, on an average, importers get delivery over 5,000 teus (20-foot equivalent units) a day.

But now it is hovering between 1,000 teus and 1,200 teus.

The port yard has a total storage capacity of 49,000 teus.

The committee usually imposes congestion surcharges, which are eventually borne by the consumers.

Earlier, the National Board of Revenue, or NBR, had allowed 19 Chittagong-based off-docks to handle more import goods.

The board on Wednesday issued another order to keep all customs houses and stations open to accelerate the export-import trade.

The letter signed by NBR second secretary Mehraj ul Alam Samrat said the officials and employees will follow advice of the health department while performing their duties.

It said the stay time of vessels reached from 12 to 14 days, which raise their operating costs.

Berth stay has increased from three to eight days too, according to the feeders’ lobby.

Meanwhile, state minister for shipping Khalid Mahmud Chowdhury will visit Chittagong Port.

He will be accompanied by shipping secretary Mohammad Mezbahuddin Chowdhury and other high officials.

Officials said the minister will leave Dhaka early morning by road and meet CPA officials at 11:00 in the morning.

The agenda of the meeting is the port’s role amid the COVID 19 and future action plans.

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