BSAA Opposes Vessel Reduction Decision, Calls for Reconsideration

Business Today 24 Correspondent, Chattogram: The Bangladesh Shipping Agents’ Association (BSAA) has strongly objected to the decision to reduce the number of vessels permitted at Chattogram Port. In a letter sent to the Chittagong Port Authority (CPA) on August 19, the association urged reconsideration of the move.

According to BSAA, during a meeting held in July this year, a proposal was raised to cut down the number of both geared and gearless vessels. However, the association argues that its representatives’ opinions were not duly reflected in the decision. They emphasized that a sudden reduction in vessel numbers would severely affect the country’s import-export trade.

The association further pointed out that in recent months, vessel turnaround time and berthing delays have significantly reduced, and ongoing initiatives are expected to improve the situation further. Hence, there is no logical basis for reducing the number of vessels, BSAA maintains.

Describing the port authority’s move as “one-sided” and “self-destructive,” BSAA warned that its implementation would cripple the country’s foreign trade. If the decision is enforced without increasing port capacity, nearly 30,000 TEUs of containers per month could be disrupted, the association cautioned.

Port authority sources, however, said that a rise in vessel arrivals has recently extended waiting times at the outer anchorage, which led to the decision to limit the number of ships.

Who is Responsible for Congestion?

In its letter, BSAA argued that the real causes of congestion are not vessel numbers but structural bottlenecks and longstanding mismanagement at the port. They identified the following major issues:

• Equipment shortage: Gantry cranes at container terminals frequently break down, causing unloading delays of up to 3–4 days. Although 17 new straddle carriers arrived last May, they have not yet been put into operation.
• Trailer scarcity: A lack of sufficient trailers continues to disrupt container movement and hamper import-export processes.
• Policy restrictions: Limitations on night navigation and strict conditions for berthing vessels larger than 190 meters prevent full utilization of the port’s capacity.
• External disruptions: Extended holidays during festivals, strikes by NBR officials, and transport strikes in recent months have further intensified the pressure on the port.

Fears of Severe Consequences

BSAA has warned that enforcing the vessel reduction decision will have far-reaching negative consequences, including:

• Damage to exports: The country’s leading export sector, especially the ready-made garment industry, will suffer heavily as shipments may miss deadlines.
• Rising costs: Reduced vessel numbers will drive freight costs sharply upward, while foreign shipping lines may impose surcharges, ultimately burdening consumers.
• Harmed global reputation: Bangladesh’s shipping schedules with foreign ports may collapse, undermining the country’s credibility in international trade.
• BSAA’s Recommendations

Instead of cutting vessel numbers, BSAA has urged the port authority to focus on enhancing capacity. Their key recommendations include:

• Observe the situation for one month before making a final decision.
• Immediately operationalize the newly arrived straddle carriers and repair faulty equipment.
• Launch night navigation on a trial basis.
• Fully utilize the Patenga Container Terminal (PCT) to ease pressure on the main port.

Statistical Evidence

To back its arguments, BSAA presented data from the first six months of 2025, showing that the number of vessels handled was actually lower than the port authority’s claim of 118 per month: