An abrupt enforcement of the Flag Protection Ordinance on the Mongla-Chittagong route has led to frustration among the main line operators (MLOs).
The law has been enforced as the state-owned Bangladesh Shipping Corporation (BSC) launched its feeder service between Mongla and Chittagong last month.
Under the Flag Protection Ordinance of 1982, local vessels get priority in carrying cargoes over foreign vessels.
The MLOs said the enforcement of the act would affect growth in business of the Mongla port, as all foreign vessels would not sail to Mongla, as they would not get any cargo there for shipment.
The MLOs said they would raise the issue at a meeting with the Shipping Minister at Mongla, scheduled to be held Thursday.
The Mercantile Marine Department (MMD) under the Department of Shipping, which enforces the law, abruptly stopped issuing waiver certificates in favour of foreign vessels last week. The MLOs on the Mongla-Singapore-Colombo routes later notified their exporter clients of it.
The BSC vessel 'Banglar Sikha' operating on the Mongla-Chittagong route has registered with the authority concerned in Bangladesh. So, it will get the advantage of the flag protection act on the route dominated by transportation of frozen foods and jute and jute goods.
Mr Sahed Sarwar, general manager of Tokyo-based K-Line, told the FE that the enforcement of the law would definitely discourage foreign vessels to sail to Mongla.
"Definitely, all foreign vessels will not go to Mongla, as they will not get cargoes there and this will affect the growth in Mongla Seaport's business," Mr. Sarwar said.
The shipping official, who is also a spokesperson of Bangladesh Shipping Agents Association (BSAA), a group of foreign shipping firms, said: "We're observing the development. If our clients do not get proper services, then we'll announce our course of action."
Before launching the BSC service on the Mongla-Chittagong route, more than eight MLOs were on the route from Mongla to Singapore or on the route from Mongla to Colombo. After introduction of the BSC service, now there will remain no cargo for those MLOs.
When contacted, BSC Managing Director Moqsumul Quader declined to comment on the issue.
Rather, he said the BSC wanted to create a level-playing field on the route.
However, the FE got some e-mail correspondences between the concerned parties' headquarters either in Dhaka or Singapore in this connection.
One email says the BSC has taken up the issue with the Principal Officer of the Mercantile Marine Department pleading for "not issuing any waiver certificate to the ACL (an MLO) for loading cargoes from or to Ctg" by enforcing Bangladesh Flag Vessels Protection Ordinance 1982.
It also reads: "(On the) Basis (of the) above, as of now, the authority (is) not allowing ACL to load any cargo from or to CTG for MGL sector." But for the Singapore-Mongla route the authority has not imposed any such embargo till date, the message further says.
It adds: "If the BSC is able to establish above, that will not be good for the MGL (Mongla) market and may impact even other trade/sector also."
Another email message termed the latest BSC measure just repetition of the old story. Earlier also a similar measure had been taken and it had had a very negative impact on the Mongla market, the message further said.
Doubts were expressed about success of the BSC's initiative in another e-mail message.
"They may rather compel shippers to forgo Mongla and look for a scope via Chittagong, instead," reads another e-mail correspondence between the Khulna office and its headquarters in Singapore.
