Shipping agents defying vessels act. But they’ve an argument

The Mercantile Marine Office has alleged that shipping agents are misleading it with false information as well as violating several provisions of the Bangladesh Flag Vessels (Protection of Interest) Act.

Moreover, terming the law "not realistic", shippers have demanded amendments to it. In recent correspondences, the two parties have noted their observations and arguments.      

The government enacted the flag vessels act aiming at prioritising Bangladeshi flag carriers in external trade by sea. According to the law, 50% of the country's total export and import is supposed to be carried out by domestic flag carriers and state-owned ships.

In case of unavailability of such ships, the shipping agents will have to avail a compulsory "waiver certificate" as per the law to carry the cargoes by other vessels.

In a letter to the Bangladesh Shipping Agents Association on 24 November, Captain Gias Uddin Ahmed, principal officer of Mercantile Marine Office, said shippers were instructed to complete the application process for the waiver certificate online. "But we are receiving false and flawed information from the shippers, which deters the issuance of the certificates in time and violates the law."   

According to the letter, foreign ship owners or their representatives are required to apply for the certificate at least 15 working days prior to cargo loading. Under no circumstances can a certificate be applied for a foreign ship.

It also said a certificate of waiver cannot be applied to false information since applications with false or flawed information will be scrapped and legal action will be taken against such shippers.

According to the Mercantile Marine Office, there are currently 80 Bangladeshi flagged ships. The Bangladesh Ocean Going Ship Owners' Association says Bangladesh spends more than $8 billion annually on shipping goods by sea, of which Bangladeshi ships with the current capacity can fetch only $200 million.

In reply to the letter from the Mercantile Marine Office, the Bangladesh Shipping Agents Association said external trade issues such as import, LC opening, cargo fixing and vessel chartering are the sole responsibility of importers. Shipping agents only represent the ships at the port of discharge as per demand of the importers.

The shippers also said currently 5,000 to 5,500 different cargo ships arrive at the seaports of Bangladesh every year. Compared to that Bangladesh flag carrying ships are insufficient in number. Besides, Bangladeshi ships have been rented out long-term to other countries and organisations.

"In reality, it is not possible to apply for a waiver for each ship within 15 working days before shipment. Therefore, the provision of the law should be postponed until an amendment is made," said the shippers.

Earlier the Shipping Agents' Association wrote to the authorities expressing the demands. On 2 September this year, The Business Standard published a report, titled "Shipping agents demand amending Flag Vessels Act".

Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents' Association, said importing and exporting goods by Bangladeshi-flagged ships "is undoubtedly a matter of pride for us. But Bangladeshi ships can transport about 10% of the country's annual demand. Therefore, it is illogical to apply for the waiver certificate 15 days before loading and unloading for the remaining 90% of cargo."

"Our demand is to amend the law to bring the time limit for waiver application to within 3-5 days," he added.

Captain Gias Uddin, principal officer of Mercantile Marine Office, said shipping agents must obtain the certificate within the stipulated time.

"There is no alternative as it is not within our jurisdiction. Only the ministry concerned can move any amendment," he noted. ***