Ctg port cancels permission of 7 vessels of French shipping line over surcharge

• CPA cancels CMA CGM vessels over surcharge
• MSC warned after imposing extra container fees
• Exporters withdraw surcharges following CPA pressure

The Chittagong Port Authority (CPA) has cancelled permission for seven vessels of French shipping giant CMA CGM after the company imposed a surcharge on containers, ignoring the authority's directive to refrain from hiking charges.

In response to the increase in tariffs on various services by the port, several foreign shipping lines or main line operators (MLOs) initiated the move to impose additional surcharges on containers moving to and from Chattogram to offset higher tariffs, which became effective in the early hours of October 15 amid opposition from businesses.

Of them, CMA CGM imposed an "Emergency Cost Recovery Surcharge" ranging from $45 to $350 per container on October 7, prompting the port authorities to instruct the operator not to do this.

In a letter to CMA on October 10, the CPA cancelled permission for seven vessels of the operator, citing violation of licensing conditions, which prohibit levying additional charges without prior approval.

CPA Secretary Md Omar Faruk told The Daily Star that imposition of additional charges is a violation of operating conditions.

The authorities also recently warned Mediterranean Shipping Company (MSC) of a similar move regarding seven of its vessels.

MSC slapped a surcharge under the same head on October 11. It said it would levy a surcharge of between $100 and $200 per TEU.

Faruk said the shipping lines were asked to withdraw the additional charges, and two MLOs have already done so.

Ikram Ghazali, managing director of APL Bangladesh (Pvt) Ltd, the local subsidiary of CMA CGM, in a letter to the CPA on October 13, informed about the cancellation of the Emergency Cost Recovery Surcharge and urged reinstatement of the vessels' permission.

Similarly, Borhan Uddin Ahmed, senior general manager of MSC Bangladesh, in a letter to the CPA, said MSC would not collect any Port Cost Recovery Surcharge.

When asked about reinstating the permission of the operators, the CPA Secretary said that they aren't aware of any decision yet.

Currently, more than 300 foreign shipping companies operate through Chattogram port, with the top 10 lines handling the majority of container traffic.