BCSA calls for inclusion of Service Level Agreement (SLA)
BusinessToday24 Correspondent, Chattogram: The Bangladesh Container Shipping Association (BCSA) has expressed concern over the exclusion of a key decision from the official minutes of a recent meeting held by the Ministry of Shipping. According to stakeholders, although a consensus was reached on introducing a Service Level Agreement (SLA) between berth operators and shipping agents, the matter was omitted from the ministry’s published documentation—raising serious apprehension.
The official minutes of the meeting were released on May 17, 2025. While the issue of increased handling charges was noted, there was no mention of SLA discussions. Drawing attention to this, BCSA sent a formal letter on May 20, 2025, and followed up with another on July 7.
BCSA maintains that only through the implementation of an SLA can good governance and accountability in port operations be ensured. The absence of such agreements represents a major institutional weakness. At present, berth, terminal, and ship-handling operators deliver services funded by shipping agents, but in the absence of binding agreements, service failures result in neither accountability nor compensation. BCSA states that agents had accepted the increased charges on the condition that an SLA would be introduced.
According to BCSA sources, the proposed SLA includes key conditions such as ensuring berth productivity of 10 moves per crane per hour, quick resolution of SDR/CDR issues, consistent operations, and maintaining stable charges until 2027.
The recent meeting had been convened to resolve the deadlock over berth handling charges. BCSA alleges that certain general cargo berth operators unilaterally imposed an additional charge of USD 5—around BDT 625—per container in March, which is 112 percent higher than existing rates. Moreover, they adopted go-slow tactics, drastically reducing productivity. This created dissatisfaction among shipping lines and agents.
In response, the port authority called a stakeholder meeting on March 9, 2025. There, shipping agents proposed a 10 percent surcharge on 60 percent of the existing rate—equal to BDT 33.57 per unit. However, the port authority rejected this and instead imposed a unilateral increase of BDT 205 per unit. BCSA later proposed a moderate hike of BDT 50.36 per unit, which was also ignored.
To compel agents to accept the charges, operators allegedly resorted to go-slow tactics, a method used in previous disputes. At this point, the port authority sought intervention from the Ministry of Shipping, which called a coordination meeting on May 6, 2025. It was chaired by the ministry’s advisor Brigadier General (Retd.) Dr. M Sakhawat Hossain.
In that meeting, all sides agreed on two key outcomes: an increase of BDT 175 per container in berth handling charges, and the formulation of a formal SLA between berth operators and shipping agents. The SLA’s primary goal was to ensure service quality, establish accountability, and create a performance-based operational framework. The port chairman was tasked with implementing this decision. On May 14, BCSA submitted a detailed proposal to the port authority outlining possible SLA terms.
