Operators of foreign container feeder vessels have reportedly encountered difficulties in obtaining waiver certificates, which are mandatory for the loading and unloading of cargo in Bangladesh.
Currently, approximately 75 foreign container vessels handle around 90 percent of the country’s containerized cargo, while 8 vessels with the Bangladesh flag handle the remaining cargo.
The Bangladesh Flag Vessels (Protection of Interest) Act 2019 stipulates that vessels with the Bangladesh flag must carry at least 50 per cent of the country’s seaborne cargo in foreign trade. To ensure compliance with this requirement, foreign-flagged vessels are required to apply to the Mercantile Marine Department (MMD) in Chittagong for a waiver certificate at least 15 days prior to loading or unloading cargo in Bangladesh.
However, foreign vessel operators have alleged that they have been experiencing delays in obtaining waiver certificates for several months. They have also claimed that they sometimes receive only one waiver for a single voyage, which allows them to transport either export or import cargo, resulting in financial losses.
Additionally, waivers have been issued with the condition that vessels must remain idle at the port and refrain from loading cargo for a certain period of time, leading to extended stays at ports. In other cases, vessels have had to depart from the port without loading the expected amount of cargo, disrupting the supply chain.
Sources have indicated that the situation has worsened following a circular issued by the Director General of the Department of Shipping recently even as the circular stated that foreign vessels would not be granted waivers to load imports 72 hours prior to the arrival of a Bangladeshi vessel at the trans-shipment port.
Similarly, waivers would not be given to load export cargo for 48 hours after the berthing of a Bangladeshi vessel at Chittagong.
Syed Md Arif, Chairman of the Bangladesh Shipping Agents Association (BSAA), has criticized this decision, describing it as discriminatory and detrimental to the trade of foreign vessels. However, Commodore Md Maksud Alam, the Director General of Shipping, has stated that allegations of delays in obtaining waiver certificates are unfounded.