Edible oil imports are facing disruption as importers are failing to unload goods at the Chattogram Port on time because of a jetty shortage after facilities were diverted to facilitate fuel imports.
The disruption, which has inflicted demurrages on the edible oil importers, may worsen the situation in the already volatile cooking oil market in Bangladesh.
The latest crisis emerged after accidents rendered two out of three jetties dedicated to fuel tankers damaged and non-operative.
Dolphin Jetty (DJ) 5, 6 and 7 are solely used to unload imported fuel oil by Padma, Meghna, and Jamuna Oil companies, owned by Bangladesh Petroleum Corporation (BPC).
It is learnt that Padma Oil’s DJ-6 was damaged in an accident in July.
On September 30, four pillars of DJ-5, popularly known as Meghna Petroleum’s Ghat, were shattered when a mother vessel carrying fuel lost control. As a result, the two jetties are not operational at the moment.
Following the accidents, state-run BPC began unloading imported fuel oil at DJ-3 and DJ-4 in order to maintain normal supply in the local market. This has been going on for more than three weeks.
But the authorities have dedicated the DJ-3 and DJ-4 for the unloading of privately imported edible oil.
As fuel tankers are now allowed to release goods at the jetties used for the vessels carrying edible oil, five mother vessels loaded with cooking oil have been made to wait at the outer anchorage.
Talking to The Daily Star, Shahab Uddin Alam, chairman of SA Group, which sells products under Muskan brand, said, “We are unable to unload the imported edible oil from the ship on time owing to the jetty crisis.”
The situation is disrupting the supply of cooking oil to the domestic market, and the ships carrying edible oil are paying the demurrages, he said.
If the jetties were not repaired swiftly, the crisis may worsen and increase the price of edible oil, he said, urging government agencies to take immediate actions in this regard.
“Since the jetty is used for unloading edible oil, we are unloading fuel oil by using another pipeline,” said Abdul Motaleb, general manager of Meghna Petroleum.
Mohammad Mohiuddin, manager of South Asian Tank Terminal, a private tank terminal operator, said that three large vessels of TK Group, City Group and Bangladesh Edible Oil Company were waiting at the outer anchorage to bring in edible oil.
These vessels were carrying more than 40,000 tonnes of edible oil. As the oil could not be unpacked on time, the importers are facing daily demurrage of $20,000 per ship, he said.
He also said because of the demurrages, the price of soybean oil might go up.
According to port officials, some more vessels with edible oil are waiting at the outer anchorage.
Of them, MT North Vanguard and W Blossom are each carrying 8,000 tonnes of edible oil. MT Urgent Sunrise is carrying 10,000 tonnes, MT Naviz Eight Violet 16,000 tonnes, and MT GW Dolphin 22,000 tonnes.
BPC Director (Operations) Syed Mehedi Hasan said that Dolphin Jetty-5 was damaged by a foreign vessel. Following the accident, officials from the ship’s local agent, Pride Shipping, paid a visit to the scene.
The corporation has sought Tk 16 crore in compensation from the vessel. “BPC is trying to negotiate the issue through talks.”
Hasan said the corporation had sought quotations from the Navy, Khulna Dock Yard, and Chattogram Dry Dock for repairing Dolphin Jetty-6.
“Hopefully, we will be able to begin the repairing as soon as possible after receiving the quotations.”
Source : The Daily Star
