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Shipping lines told not to levy container detention charges

Deptt order angers shipping agents


SYFUL ISLAM | May 01, 2020 00:00:00


The Department of Shipping (DoS) has asked the shipping lines not to realise container detention charge on import and export shipments during the lockdown period, spurred by COVID-19 outbreak.

The shipping lines are also advised not to impose any new or additional charges until May 5 when the 41-day shutdowns end.

The department issued the advisory on Wednesday, which sparked resentment among the shipping agents in the country.

Usually, containers get free time for 14 days after the common landing date and thereafter charged between $5 and $10 per day as detention charge until the importers return those to the port or off-docks.

Associate director of Transmarine Logistics Ltd, the local agent of Yang Ming Line, Mohammad Ahsanuzzaman told the FE on Thursday most shipping lines operate their fleet on a leasing basis and pay for the rental daily.

Due to the prolonged congestions at the Chittagong port, the containers now have to stay for 15 days at the outer anchorage and at berth, compared with a minimum of three to four days in recent past, he said.

During the shutdown period, the containers are lying at the Chittagong port for several weeks when the designated free days expire.

"The shipping lines will have to pay container rent besides the opportunity cost, but now the shipping department is asking us not to charge detention fee on importers, which is a mere cost recovery for the liners. This is not acceptable at all when you consider the impact of COVID-19 has on us," he said.

"Shipping lines will incur huge financial losses if the order is implemented," said Mr Ahsanuzzaman.

Chairman of the Bangladesh Shipping Agents Association (BSAA) Ahsanul Huq Chowdhury told the FE on Thursday vessels are staying at the outer anchorage and berth for weeks and counting millions of taka as demurrage.

A few days back, shipping agents had requested the government to waive some charges like port dues, pilotage fees, berthing and unbreathing tariffs, quay gantry crane, loading or discharging the container, storage charges, container and non-CPA equipment, and store rent for containers at off-docks.

"The government paid no heed to our appeal rather issued an order not to realise the detention charge," Mr Chowdhury said.

He said the department issued the advisory in line with the measures taken in Indian ports.

But the reality is there is no such congestions in Indian ports and vessels there enter and leave in time while at the Chittagong port an additional two weeks are required in ship handling, he said.

After the shipping department's advisory, he wrote that the imposition or waiver of detention charge of containers depends on foreign principals.

"The principals may not consider the waiving of the container detention charge unless the government waives or reduces port tariffs for vessels," he noted.

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