Foreign feeder vessel operators allege harassment to get waiver certificate

Foreign feeder vessel operators are allegedly facing harassment to obtain the mandatory waiver certificate from Bangladesh authorities, which they say is increasing the shipping cost and time.

According to the Bangladesh Flag Vessels (Protection) Rules, the waiver certificate is supposed to be issued by the Mercantile Marine Office within three working days of the application, but the feeder operators said that the process is taking at least 10 or more days.

As a result, even after the ship reaches the port, ship owners are not getting permission to load containers and they have to pay a fine ranging from $10,000 to $20,000 depending on the size of the ship while waiting.

A senior official of a feeder vessel operator plying on the Chattogram-Colombo route, on condition of anonymity, told The Business Standard (TBS), "We have submitted an application for a waiver certificate on 9 February, but the Mercantile Marine Department issued it on 16 February after many requests. The ship from Colombo was delayed by four days and we had to face financial losses."

When contacted, Mercantile Marine Office Principal Officer Captain Sabbir Mahmood told TBS that the complaint that it takes more than three days to get the waiver certificate is not true. 

"Waiver certificates are not issued to foreign ships if cargo space is vacant on national flag-carrying ships at any port," he added.

The government enacted the Bangladesh Flag Vessels (Protection) Act to give priority to Bangladeshi flag vessels in the transportation of goods on international sea routes.

As per the law, 50% of the total cargo transported by ships is mandated to be carried on domestic flagged and state-owned ships. If the space is not vacant, the shipping agents have to obtain the mandatory waiver certificate as per the provisions of the law.

Meanwhile, an emergency meeting was held at the Bangladesh Shipping Agents' Association office on Thursday afternoon regarding the complications. The meeting was attended by representatives of foreign feeder vessels plying on various transhipment routes.

Bangladesh Shipping Agents' Association Chairman Syed Mohammad Arif told TBS that about 90 feeder vessels, including eight Bangladeshi-flagged ones, move from Chittagong port to various transhipment ports. But only 20% of goods can be transported by domestic vessels. In this situation, waiting for more than 10 days to get a waiver certificate for 80% of the products is unnecessary.

"We have a meeting with the principal officer of the Mercantile Marine Office on Sunday (19 February) regarding the matter. These issues will be discussed there," he added.

According to the Shipping Agents Association sources, Chattogram port handles more than three million containers annually. There is no scope to transport 50% of goods on Bangladeshi-flagged ships. 

On the other hand, it is also unreasonable to keep a ship waiting for more than 10 days for a waiver certificate because it takes around five days for ships to reach transhipment ports like Singapore, Colombo, Port Kelang, and Tanjung Pelepas from Chattogram, the association sources said. 

According to the law, foreign ship owners or their representatives have to apply online to the Mercantile Marine Office before loading the goods.