Shippers seek BGMEA's help to resolve waiver certificate crisis

The Bangladesh Container Shipping Association has sought cooperation of its stakeholder Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to address unusual delays which foreign-flag vessels have been facing in obtaining waiver certificates – the documents containing shipment details – for the last couple of weeks.

The Mercantile Marine Office is supposed to issue the certificates within three working days after receiving applications, but it has been failing to do that even in ten days in recent time, the association said, which causes a financial loss for foreign ships.  

"Such a practice, which is unfavourable for the country's image, could harm overall foreign trade if the disruption in feeder services continues at Chattogram port," Bangladesh Container Shipping Association Executive Secretary Sheikh Habibur Rahman said in a letter to the BGMEA Port and Standing Committee Chairman Hasan Abdullah on Monday.

"We would request your membership to influence to protect the interest of foreign flag vessels for the greater benefits of foreign trade. Also, place the matter before the authorities concerned to find a viable solution," reads the letter.

According to the Bangladesh Container Shipping Association, at least 12 ships on the Chattogram-Colombo route have failed to depart the Chattogram Port on time, resulting in a fine of $10,000-12,000 per day for each ship. Even the vessel MV Hansa Homburg halted operations on the route. The government can lose some $60,000 in revenue per month for the withdrawal of the vessel from the route, the association said.

Feeder vessels carry some 55% of imported goods and 85% of exported goods of the BGMEA, according to the association, while foreign flag carriers account for 80% of shipment.

Currently, the Chattogram Port sees the movement of 90 feeder vessels – 82 foreign and 8 locally-owned.

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 ships. If the space is not vacant, the shipping agents have to obtain the mandatory waiver certificate as per the provisions of the law.

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

Meanwhile, foreign feeder vessel operators alleged that they are also facing harassment to obtain the mandatory waiver certificate from the authorities concerned.