Container ship operator Sea Consortium Bangladesh Ltd has paid Tk 4.78 million as a fine to secure the release of three of its vessels from Chittagong port. The fine was imposed for alleged violations of the Bangladesh Flag Vessels (Protection) Act 2019, according to sources.
However, Sea Consortium officials claim they were fined "arbitrarily" by the Mercantile Marine Office, and they did not violate the act.
The Mercantile Marine Office fined the vessels X-PRESS LHOTSE, X-PRESS NUPTSE and X-PRESS NILWALA in January this year. The fine was imposed for carrying cargo without obtaining a waiver certificate, which is mandatory under the flag vessel act.
On February 8, the Sea Consortium appealed the administrative penalty to the Ministry of Shipping. The appeal contested the fine for transporting cargo without a waiver certificate.
Saiful Islam, general manager of Sea Consortium Bangladesh Ltd, told The Financial Express on Friday that the Ministry of Shipping rejected his company's appeal to waive the penalty without a hearing.
He said the flag vessel act stipulates that Bangladeshi flag vessels have priority for carrying 50 per cent of cargo, with foreign flag vessels transporting the remainder.
"Our company, as a single operator, did not carry 50 per cent of the cargo," he said. "Therefore, imposing a penalty on this basis is illogical."
Mr Islam further argued that the act and its subsequent rules go without clarity on whether the 50 per cent rule applies to the total trade or individual operators.
"The Mercantile Marine Office appears to be deliberately targeting our company and Straits Orient Lines," he alleged.
Until the fine was paid on Thursday evening, Sea Consortium's X-PRESS LHOTSE remained detained for two days at the outer anchorage of Chittagong port after loading 1,600 twenty-foot equivalent units (TEUs) for export.
The two-day delay risked the containers missing connecting mother vessels in Colombo, which would have impacted their final destinations to the USA and Europe.
Trade bodies reacted strongly to the vessel's detention.
On Thursday, Hasan Abdullah, chairman of the Port and Shipping Committee of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), wrote a letter to the principal officer of the Mercantile Marine Office.
He expressed frustration at the vessel not being allowed to sail with its cargo of apparel exports.
"... we request you to issue the necessary documents required for the vessel's departure, considering the possible consequences for our member industries," Mr Abdullah wrote.
Syed Iqbal Ali Shimul, senior vice-chairman of the Bangladesh Shipping Agents Association (BSAA), alleged that the authorities are attempting to force foreign vessel operators out of Bangladesh.
He claimed they are favouring a local company with capacity as low as only 8 per cent to handle this business.
"The authorities seem to be misinterpreting and misapplying the flag vessel act," Mr Shimul said.
syful-islam@outlook.com