Chittagong port: New tariffs implemented despite objection from business leaders

Despite objections from business leaders, the Chittagong Port Authority has implemented new tariffs. The revised charges came into effect at the first hour of Wednesday.

The gazette notification announcing the new tariff rates was published on 14 September. According to the notification, service charges at the port have been increased by an average of 41 per cent compared to the previous rates.

The highest increase has been imposed on container handling charges. A review of the audited accounts for the 2023–24 fiscal year shows that the additional tariff per container (20 foot long) has been set at approximately US $39 (Tk 4,395).

A significant portion of this additional tariff will be collected from the shipping lines, while the remainder will be paid by importers and exporters.

The shipping lines, in turn, are expected to recover their increased costs from importers and exporters, who will ultimately pass on these additional expenses to consumers through higher product prices.

According to the government’s statement, port tariffs had not been substantially revised since 1986. In 2007 and 2008, tariff adjustments were made in only five service categories.

The Adviser for Shipping, Sakhawat Hossain, has also stated on several occasions that the tariff revisions were made following consultations with business stakeholders and that the new rates remain lower than those of many international ports.

However, business representatives argue that the steep increase in tariffs will exert pressure on the manufacturing sector, consumer goods and commercial products.

Moreover, exporters will have to bear additional costs at two stages of their operations. Consequently, the burden of increased tariffs will ultimately fall upon consumers.

When contacted, former President of the Chittagong Chamber of Commerce and Industry, Amir Humayun Mahmud Chowdhury, told Prothom Alo that although businesses may initially absorb the higher tariffs, the eventual impact will be reflected in product prices, making consumers the most affected party.