Despite strong protest from importers and exporters, the Chittagong Port Authority (CPA) began implementing a revised tariff schedule with a sharp 41% rise in service charges at midnight yesterday.
Shipping lines have already begun to modify freight rates in an effort to offset the rise in operating expenses brought on by the port tariff increase.
In the meantime, owners of prime mover trailers that transport containers ceased shipping containers to the port yesterday afternoon in protest of a sharp rise in port entrance fees under the new tariff schedule.
“The country’s import and export trade costs would increase manifold due to the port tariff hike,” said Amir Humayun Mahmud Chowdhury, Former President of the Chittagong Chamber of Commerce and Industry.
He said that increased freight fees levied by the shipping lines and a 60% charge increase by the inland container depots (ICDs) would worsen the issue.
All ships carrying cargo and containers have been billed at the revised tariff rate for various services since 12:01 am.
According to CPA Secretary Md. Omar Faruk, the updated tariff went into effect on 30th September in accordance with a CPA circular. The CPA has significantly revised the fees, charges, leases and tolls for several of its services, including container and vessel handling, for the first time in 40 years.
On 14th September, the government announced the new tariff structure in a gazette notice, which went into force the next day.
The shipping adviser promised more talks and postponed the decision for a month after meeting with port users on 21st September.
However, the port administration announced in a circular on 30th September that the revised tariff rates will take effect on 15th October without consulting stakeholders further, according to firms.
Business executives and entrepreneurs from Chattogram opposed the decision, calling for the new tariff to be immediately suspended. They claimed it would increase the cost of doing business significantly and, eventually, drive up the price of products.
The rates are, on an average, 41% more than the prior levies, according to CPA officials.
However, companies claimed that the bigger increases in a number of fees would make them less competitive.
