The feud between shipping agents and berth operators over increasing the onboard container handling rate has remained unresolved for over three months now, despite repeated attempts by the Chittagong Port Authority (CPA).

The CPA, in a tripartite meeting last month, unilaterally determined an incremental rate, but the shipping agents opposed it.

Sensing further disruption in container handling at six jetties of a port terminal, the CPA has, for the second time, sought intervention from the ministry for the sake of smooth port operations and uninterrupted import and export activities.

The CPA also sought the ministry's assistance early last month on the same issue, following a longer stay of vessels for several weeks due to slowed-down operations by the berth operators amid the dispute.

The issue arose in early January, centring on a longstanding conflict between shipping agents—who represent container vessel operators—and six berth operators over the latter's proposal to raise onboard container handling charges.

The six berth operators are engaged in handling vessels at six jetties of the port's oldest terminal, named the General Cargo Berth (GCB).

Shipping agents currently pay berth operators Tk 559.53 per container for onboard handling, including loading and unloading.

In January, the berth operators demanded a $5 increase in the onboard handling charge per container, which the shipping agents opposed.

Fazle Ekram Chowdhury, president of the Berth Operators, Ship-Handling Operators, and Terminal Operators' Owners' Association, said they have not increased the onboard handling rate since 2007.

"It is really impossible for us to continue operations at the previous rate amid rising operational costs, workers' wages, and other expenses," he said.

After months of negotiation, the CPA, in a tripartite meeting on March 9 this year, unilaterally determined an incremental rate of Tk 205 per container.

The berth operators instantly gave their consent to the CPA-determined increase, but the shipping agents opposed it, said CPA Secretary Md Omar Faruk.

The leaders of the Bangladesh Container Shipping Association (BCSA) offered to increase the rate by only Tk 33.57 per unit during the meeting.

Later, in a letter to the CPA on March 23, the BCSA finally proposed an increase of Tk 50.36 per unit.

Port users reported that the berth operators rejected the offer and started issuing bills at the CPA-determined rate, while the shipping agents have refrained from making any payments since then.
Under these circumstances, the CPA Secretary, on April 7, sent a letter to the senior secretary of the shipping ministry, accusing the shipping agents of non-cooperation.

In the letter, the CPA secretary expressed concern over a probable disruption in container handling at the GCB jetties due to the ongoing dispute, which could increase vessel stay times.
He expressed hope that the problem would soon be resolved with timely intervention from the ministry.