Two feeder container ships, one operated by X-Press Feeders and the other by Straight Orient Lines (SOL), have been fined for loading cargo and completing voyages without securing waiver certificates from Bangladeshi authorities.
The Mercantile Marine Department (MMD) has imposed fines on the operators violating rules under the Bangladesh Flag Vessels Protection Act 2019.
The MMD fined the operators of vessels namely X-Press Lhotse and SOL Promise, Tk 500,000 (US$4,520) each as they carried containers despite being denied waiver certificates which is mandatory for foreign vessels before loading cargo.
The two feeder vessels operate on the Chittagong-Colombo route.
The MMD in separate letters to the local agents of the vessels said last week the applications for waiver certificates for the ships were denied due to the presence of a Bangladesh-flagged vessel at the load port.
According to the Bangladesh Flag Vessels Protection Act, Bangladesh-flagged vessels get priority.
Despite the decline of the waiver certificate, the vessels have loaded containers and completed the voyages, according to the letters, which mention that both ships have violated section 3 of the Bangladesh Flag Vessels Protection Act 2019 and thus have been fined under section 7 of the act.
Stakeholders say that during the last few weeks, a number of feeder vessels operated by X-Press Feeders and Straight Orient Lines (SOL) faced severe complications over the issuance of waiver certificates.
Earlier in March this year, the MMD had also fined Trident Shipping Line for violation of the same rules.
Mohammed Saiful Islam, general manager of Sea Consortium Bangladesh, said his company has received the letter from the MMD and will decide the next course of action through internal discussion.
Earlier on 9 November, G Michael Rodrigues, senior general manager of Sea Consortium Bangladesh, in a letter to the MMD, said that as a common feeder carrier “it is extremely difficult for us to restrict cargo flows and perfect count of cargo volumes which often keep changing with circumstances”.
“Vessels and schedules are an important essence in running of our services and delays or disruptions not only impact us but also the bonafide Bangladeshi shippers and buyers of Bangladeshi commodities, most of which are time and transit sensitive readymade garments,” he wrote.
He added that main line volumes are based on their bookings from buyers/shippers and as a feeder carrier, his company is committed by contractual obligation to accept their bookings when they are placed.
G Michael Rodrigues pointed out, “These bookings materialise after months of various activities/actions between buyers and shippers. Our vessel capacities and schedules are designed to accommodate all these export cargos booking placed by respective customers/shippers.“
“Any deviation to the above comes with a very high cost and huge supply chain disruptions which is not affordable. These service challenges not only impact our customers but all vessel operators whether foreign or Bangladeshi flagged and who maintain their capacities and schedules accordingly,” he noted.
He urged the MMD head to come up with a clear guideline in writing keeping in mind the transparency and “Ease of Doing Business” considering the predicament of the carrier.
“Already with the prevailing difficulties, at least three shipping lines either have or are in the process of withdrawing services from Bangladesh which in the long run does not augur well for the country and meeting Bangladesh’s ambitious growth plans,” he said.
Sharar Nayel
Asia Correspondent
