Waiver certification delays: Two foreign vessels leave Ctg port with 50% cargo capacity

Bangladesh

TBS Report
24 October, 2023, 04:50 pm
Last modified: 24 October, 2023, 05:11 pm
Foreign-flagged vessels carrying cargoes to and from Bangladesh have been facing service disruptions at the port owing to aforementioned complications

Two foreign-flagged vessels departed the Chittagong port on Tuesday (24 October) with 50% cargo capacity owing to complications over obtaining mandatory waiver certification.

The ships – OEL SHASTA and X PRESS DHAULAGIRI – ended up incurring a loss of $280-$320 per container in rent. 

The vessels' local representatives said they faced financial loss over not obtaining the waiver certification from the Maritime Trades Department.

Foreign-flagged vessels carrying cargoes to and from Bangladesh have been facing service disruptions at the port owing to aforementioned complications.

As a result, shipping companies and other stakeholders often have to leave the port without taking their cargoes or have to face delays and pay fines.

Crown Navigation's deputy managing director, who is a representative of the Panama-flagged OEL SHASTA, told The Business Standard today that the ship operating on the Chattogram-Colombo route left the port this morning with 480 TEU containers, whereas it has the capacity of 1,100 TEUs. 

"If the situation persists, the main line operator may stop the movement of ships bound for Chittagong port," he said.

Earlier this month, as per feeder vessel operators, at least five vessels operating on Chattogram-Colombo route left the Chittagong port without loading cargo following delays. Vessels were also reportedly moved to the outer anchorage without loading or unloading goods.

As per the Bangladesh Flag Vessels (Protection) Act 2019, 50% of the total cargo transported by ships is mandated to be carried on domestic flagged ships. If there is no more space in domestic ships, the foreign shipping agents have to obtain the mandatory waiver certificate for carrying the rest of cargo as per the provisions of the law.

According to the Bangladesh Flag Vessels (Protection) Rules 2023, foreign ship owners or their representatives have to apply online to the Mercantile Marine Office for the certificate before loading the goods.

Meanwhile, the World Shipping Council, in a letter sent to the Bangladesh state minister for shipping in May this year, asked for amending some clauses of the rule to solve the waiver certificate complications at the Chittagong port.

The rule has caused difficulties for goods transportation in international trade, affecting imports and exports negatively, said the organisation.

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