Maersk imposes surcharge on Bangladesh shipments after tariff hike at Ctg port

Just 10 days after a new tariff structure came into effect at Chattogram Port, global logistics giant Maersk has announced the introduction of a peak season surcharge on shipments bound for Bangladesh.

According to an official announcement published on its website on Saturday, Maersk will impose a peak season surcharge of $125 per container – for both dry and reefer cargo – on shipments originating from West and Central Africa to Bangladesh, effective 1 November.

Exporters warn that the new surcharge will compound the cost pressures already caused by the Chattogram Port Authority's (CPA) recent tariff hike.

Maersk stated the surcharge is necessary to maintain service reliability and operational efficiency amidst rising seasonal demand. The charge will apply to both Spot and Non-Spot bookings, based on the price calculation date. All other existing charges remain unchanged.

The peak season surcharge is a standard global practice, influenced by factors such as port costs, vessel availability, equipment balance, and feeder freight rates.

 Offsetting increased port tariffs

Industry insiders suggest Maersk's decision is primarily aimed at offsetting increased port expenses following Chattogram Port's recent tariff hike. Shipping lines, which often operate under yearly contracts, typically use additional surcharges like the peak season surcharge to recover unexpected costs.

The new surcharge applies to shipments from over two dozen African countries, including Nigeria, Ghana, Namibia, Liberia, Senegal, Sierra Leone, and the Ivory Coast. This is particularly significant for Bangladesh's textile industry, as more than 50% of the country's cotton imports – a key raw material – come from African nations, with West Africa alone accounting for 35%in the 2023-24 fiscal year.

The charge will be added to the total freight rate for these shipments, alongside standard costs such as basic ocean freight, documentation fees, terminal handling, and risk surcharges.

Tariff hike and regulatory pressure

The move follows the CPA's decision on 15 October to implement increased tariffs across 23 of its 52 service categories, with cost rises reaching up to 40% in some areas. Charges for crane operations, container handling, storage, and container movement rose by an average of 144%.

Previously, the CPA had successfully exerted pressure on major shipping lines to withdraw similar additional charges.

Logistics companies signed contracts based on earlier cost calculations, according to Mohiuddin Abdul Kader, president of the Bangladesh Maritime Law Society. "With the sudden increase in port tariffs, they won't bear the extra expenses out of pocket – that's why they have imposed the surcharge," he explained.

Khairul Alam Sujon, vice president of the Bangladesh Freight Forwarders Association (BAFFA), noted that such charges are typically imposed to offset rising costs, adding that whatever the name, the ultimate impact will fall on importers and exporters.

M Shahadat Hossain Sohel, managing director of Towaltex Limited, told TBS, "This figure may not seem big, but every small cost increase impacts the industry. In the end, production costs will rise – that's the reality."

Officials say the imposition of the new surcharge has come to the authority's attention, stating, "The matter is under review, and the port will take action against any company that imposes such surcharges," Md Nasir Uddin, chief personnel officer of CPA, said. 

Following the tariff revision, four major shipping lines – France-based CMA CGM, Switzerland-based MSC, Denmark-based Maersk Line, and local operator HR Lines – initially announced new surcharges on shipments passing through Chattogram Port from 7 October. CMA CGM was the first to declare an additional fee of $45 per 20-foot container, effective 26 October.

However, on 10 October, the CPA suspended the approval of seven CMA CGM vessels, citing a breach of licensing conditions that prohibit the imposition of surcharges without prior authorisation. In a formal notice, the CPA said the surcharge violated operational terms, leading to the temporary suspension of the company's berthing permissions. CMA CGM subsequently withdrew its planned surcharge under pressure from port authorities.

MSC had also announced a $100 surcharge per container, and Maersk proposed increasing its terminal handling charge by $45 for 20-foot and $105 for 40-foot containers. Both companies backed down following regulatory intervention. Maersk, however, introduced the new peak season surcharge on 25 October through its global network, bypassing the earlier domestic conflict.