Highlights:
- Tariff increase impacts 23 service categories
- Overall port usage costs set to rise by an average of 41%
- Most significant increase in charges will be in the container transportation sector (37%)
- Vessel waiting charges face a drastic increase, up to 900% for prolonged delays
- Businesses warn the tariff hike, fixed in USD, will negatively impact the export industry
- External consultancy received from Spanish firm to fix new tariff structure
- CPA mandates shipping agents to pre-provision funds at latest rates before securing NOCs
- Tariff adjustments follow a review of rates at 17 international ports, including 10 in Asia
The Chattogram Port Authority (CPA) has announced that it will begin collecting its newly imposed increased tariffs (charges and fees) starting at midnight on 14 October.
The decision was formalised through a circular issued yesterday (30 September), signed by CPA’s Chief Finance & Accounts Officer Mohammad Abdus Shakur.
This move would raise the cost of port usage by up to 41% in various categories.
The circular specifies that all ships, containers, and cargo arriving at the Chattogram port after 12am on 14 October will be billed according to the new tariff schedule. All port users, including C&F agents, will be required to pay the increased fees.
The implementation of the new rates had been suspended for a month following the intervention of the shipping adviser.
Furthermore, the circular added that all listed shipping agents have been instructed to secure a No Objection Certificate (NOC) for incoming vessels only after ensuring that the required amount of funds, calculated at the new, higher rate, has been provisioned in their scheduled bank accounts.
This marks the first tariff increase by the Chittagong Port Authority in approximately 40 years.
The CPA, in accordance with a government gazette, had initially declared its intention to implement the increased tariffs across 23 service sectors from 15 September. This move would raise the cost of port usage by up to 41% in various categories.
Out of 52 total service sectors at Chattogram Port, tariffs were increased in 23, following a review of operations and tariffs at 17 international ports, including 10 in Asia. Spanish firm Idom acted as the port’s consultant in determining these new rates.
Businesses had raised strong objections, warning of the potential adverse impact on the export industry. These concerns were voiced during a workshop at Chattogram Port on 20 September, attended by Shipping Adviser (retd) Brigadier General M Sakhawat Hossain.
In response to the objections, the adviser decided to postpone the collection of the increased tariffs for one month.
Md Omar Faruk, secretary of the Chattogram Port Authority, confirmed to The Business Standard, “The adviser had suspended the collection of increased tariffs for one month. It has now been decided that they will be collected from 15 October, after 12am on 14 October.”
According to the gazette, the most significant increase in charges will be in the container transportation sector. The fee for a 20-foot container will rise from Tk11,849 to Tk16,243, an average increase of 37% per container.
For container vessels, import container charges will increase by Tk5,720 and export container charges by Tk3,045. The loading and unloading fee per container has increased by approximately Tk3,000, and the charge per kilogram of containerised goods has increased by Tk0.47, from Tk1.28.
Overall, container handling and transportation costs alone have seen an increase of 25% to 50%.
Vessel waiting charges will also see a sharp rise, almost doubling in some cases.
If a ship cannot berth within its scheduled time, an additional charge of 100% will apply for waiting beyond 12 hours, 300% for 24 hours, 400% for 36 hours, and a substantial 900% for waiting longer than 36 hours.
Pilotage charges for vessels have been set at up to $800, and tug charges for each ship’s assistance at up to $6,830.
The Chattogram Port is a critical hub for Bangladesh’s economy, handling 92% of the country’s import-export sea trade and 98% of its container and cargo transportation.
In 2024, the port handled 3.27 million TEUs (twenty-foot equivalent units) of containers, compared to 3.05 million TEUs in 2023 and 3.14 million TEUs in 2022.
Additionally, the port handles an average of 130 million tonnes of cargo and over 4,000 cargo vessels annually.
Earlier in June, the CPA had proposed the hike, prompting protests from trade bodies and shipping agents. At a meeting convened by the shipping ministry on 25 August, port users argued that any tariff adjustment should remain within 10%–15%.
However, the meeting ended without a decision amid stakeholder opposition. Another round of discussions was held on 5 September, but the final decision largely followed the port authority’s proposal with no concessions.
The port currently collects tariffs under 52 service categories, 23 of which are directly affected by the new rates. Once implemented, the new structure would raise tariffs by an average of 41%. Because all charges are fixed in US dollars, taka depreciation would further increase costs, port users had told The Business Standard.
