Ctg port’s 41% tariff hike nearly double in reality
These increases reverberate through supply chains, disproportionately affecting smaller operators and ultimately raising prices for goods, from vessel operators to exporters and importers, and eventually consumers who bear the hidden inflation at retail shelves.
Highlights:
- CPA claimed a total of 41% tariff increase
- FCL handling charge went up by 63.5%, LCL by 156.7%
- Total compulsory cost increased by 85%-139% depending on vessel size
- Charges for Tug hire rose to 440%-980%
- Pilotage charge rose to 100% at least
Costs for handling containers and bulk cargo at Chattogram Port have skyrocketed far beyond the Chattogram Port Authority's official claim of a 41% tariff hike.
When CPA unveiled the new structure on 15 October, it downplayed the impact, insisting the adjustment would add a mere Tk 0.12 per kilogram of cargo. But the numbers tell a far grimmer tale: internal billing records and shipping agents' calculations reveal a surge that is shaking supply chains and pocketbooks alike.
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Handling a full container load (FCL), where a single importer or exporter occupies an entire shipping container, has risen 63%. Less-than-container-load (LCL) shipments, typically used by smaller businesses that cannot fill a container, have surged 105%.
These increases reverberate through supply chains, disproportionately affecting smaller operators and ultimately raising prices for goods, from vessel operators to exporters and importers, and eventually consumers who bear the hidden inflation at retail shelves.
LCL costs doubled
The rising LCL cost can be better understood from a case study. Nipa Fashion Wear Industry Ltd, an RMG factory, imported four tonnes of raw material in a 20-foot LCL container in September.
The bill issued on 30 September shows wharf rent charges of Tk66.88, river dues of Tk136.40, and Tk1,200 for unstuffing. With VAT and marine labour welfare fees, the factory paid Tk1,667.23 in total, equivalent to Tk416.81 per tonne.
The same importer brought in five tonnes of similar goods in October, after the new tariff took effect. The 26 October bill shows river dues of Tk271.78 and unstuffing charges of Tk3,325.17. The wharf rent was dropped, but the total reached Tk4,280.37 with VAT and fees.
That pushed the per-tonne handling cost to Tk856.07, a 105% jump.
Mustafizur Rahman, a customs agent who handled both shipments, told TBS that the CPA's claim of raising the price by 41% is "nowhere near reality. Charges tied to US dollars have gone up by more than 100%."
Experts warn that as many port charges are pegged to the dollar, exchange volatility directly amplifies local cost burdens, something many small and mid-sized operators are ill-equipped to absorb.
FCL handling charges up by 63%
The company's FCL clearance records show similar escalation. On 11 September, CPA billed Tk816 in river dues, Tk2,250 for lift-on, and Tk5 for repair. With VAT and MLWF charges, the total came to Tk3,564.29.
A comparable FCL released on 29 October cost Tk5,826.38—driven by higher river dues (Tk1,328.70), higher lift-on charges (Tk3,684), and VAT tied to the increased base. The rise amounts to 63.47%.
Experts want that in an industry that operates on tight margins, increasing logistics costs by this margin can erode competitiveness overnight, particularly for RMG exporters already contending with global price pressures and falling orders.
Costs of cargo vessels jump 86% to 139%
An internal shipping agents' report shows Chattogram Port's new tariff far exceeds the claimed 41%, with dollar-linked compulsory charges, especially tug hire and pilotage, multiplying costs. These unavoidable fees now dictate operational expenses, reshaping the cost structure across maritime trade.
For a 187-meter over-length tanker with 30,000 tonnes capacity discharging gasoil or HSFO, compulsory costs rose from $16,578 to $30,772, an 86% jump.
Tug hire, the fee for using tugboats to manoeuvre vessels safely, soared from $2,907 to $15,709. Pilotage, the cost of a licensed harbour pilot, doubled from $4,933 to $11,040, while berth hire rose from $4,140 to $6,624.
LPG carriers face even sharper increases. A 145-meter vessel calling at Olinagar or Sonaichhari now pays $10,041 for compulsory services versus $4,545 previously, a 121% rise.
Tug hire alone jumped from $726 to $4,715, a 549% leap. Pilotage doubled, and port dues rose 27%, though the operational conditions remain largely unchanged, raising questions about the policy rationale.
Coal carriers heading to Matarbari are the hardest hit. For a 229-meter vessel, compulsory costs climbed from $34,298 to $81,929, a 139% surge.
Tug hire skyrocketed to $31,418, pilotage moved from $7,235 to $15,934, and berth hire increased 60%. For a port supplying national power plants, these hikes directly feed into electricity generation costs and, ultimately, consumer tariffs.
Shipping lines raise freight after pressure rollback
Global carriers initially attempted to recover the higher port charges through surcharges. CMA CGM, the international shipping line, announced an 'Emergency Cost Recovery Surcharge' on 7 October, effective 26 October, citing "increased local operational charges" after the tariff hike.
CPA responded by cancelling the anchorage and berthing permissions of seven CMA CGM vessels on 10 October. Under pressure, the line withdrew the surcharge on 13 October and requested reinstatement of its vessel approvals.
Khairul Alam Sujan, director of the Bangladesh Shipping Agents Association, said MSC and Maersk faced similar pressure. "They imposed cost recovery surcharges but had to cancel after their vessel permits were suspended," he said. "Later, they increased marine freight instead, which has raised the overall cost of containers and cargo."
Scrap vessels charged tug hire despite no use
Scrap vessel handlers say the new charges defy logic. Mosharraf Hossain, an agent for scrap ships, told TBS that the CPA has begun imposing tug fees on vessels that do not use tugs at all.
Apparently, the application of mandatory fees for unused services hints at a deeper inefficiency within the tariff framework, an approach that prioritises revenue over rational cost linkage.
"Scrap ships move from the outer anchorage to the beaching yard on their own engines. They need no tug support, yet we've been paying $632 in tug charges. Now, because most scrap vessels are above 20,000 GRT, that fee jumps to $6,830," Mosharraf said.
He called the 1,100% increase "unprecedented anywhere in the world" and lodged a strong protest against what he described as an unjustified burden on the sector.
Amirul Haque, managing director of Seacom Shipping, said the actual increase is "more than double what CPA claims. Tug hire alone is up around 400%. You pay it whether you hire the tug or not, and that can't be a fair practice."
CPA to meet stakeholders on 10 November
CPA has called a meeting with port users on 10 November to discuss the revised tariff schedule and related charges. Shipping Adviser Brig Gen (Retd) M Shakhawat Hossain will preside over the session at the CPA headquarters, according to an office notice signed by CPA secretary Omar Faruq.
The meeting follows weeks of protests, legal challenges, and warnings from business groups that the tariff hike will raise the cost of trade at a difficult time. Transport operators briefly blocked port access over dramatic increases in entry fees, while exporters and importers issued a seven-day ultimatum demanding the tariffs be rolled back.
The Bangladesh Maritime Law Society has served a legal notice challenging the tariff as unlawful. The High Court has also issued a rule questioning CPA's decision after a writ petition by the Bangladesh Container Shipping Association.
However, Omar Faruk defended the policy framework, saying that the 41% is the average hike of the service tariffs. "For some services, the tariff increased more, and for some others it increased less."
Stakeholders say Monday's meeting will reveal whether CPA intends to offer any relief or continue with the new structure. It will be the first high-level discussion since the tariff took effect on 15 October, a move CPA pushed through despite earlier assurances of further consultation.
For many in the maritime and export community, this meeting may decide whether the country's busiest port continues as a facilitator of trade or evolves into another pressure point in the cost chain of an economy already fighting to stay competitive.
