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External trade gets expensive

10pc peak season surcharge by MLOs comes into force tomorrow

ZAHIDUL HAQUE
Bangladesh's external trade will have to count extra in transportation of goods through shipping lines as the mainline operators slap a 10 per cent peak season surcharge (PSS) from tomorrow.
This would be a fresh blow to the exporters and importers as they are already finding it difficult to cope with the 30 per cent hike in general rate of increase (GRI) which came into effect on July 1.
Talking to The Daily Star, feeder vessel operators said the increase was made due to some external factors like increase in oil price and growing operating cost of shipping business.
An agent of mainline operators (MLOs) said there is another proposal for increasing the bunker adjustment factor (BAF) from $75 to $90 per container from September 1 next.
He said all the exporters and importers have already been informed about the proposed hikes. But exporters fear that the two-fold rate hike in terms of PSS and BAF would make the business more difficult.
However, shipping line officials said the freight charge hike would not only hurt Bangladeshi business but also affect all the countries.
Shippers' Council of Bangladesh (SCB) President Faruber Anwar told The Daily Star yesterday that MLOs often raise PSS rate during the peak shipping season from July to September.
Terming the situation a global crisis, the SCB president said government should initiate talks with the authorities concerned, though there is a little hope of finding a solution to the problem.
Earlier, shipping line operators raised the freight charges by around 30 per cent with effect from July 1.
They raised the rate for per 20-ft container by US $250 and per 40-ft container by US $500, bound for European ports following an announcement of fresh general rate of increase (GRI) in London.
The MLOs also took similar decision for containers bound for American ports.
Explaining the reason behind the increase, the shipping line operators said increases in oil prices, ship operating and shipbuilding costs have compelled the MLOs to increase the freight charge.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), a platform of the second largest export earning sector, and Bangladesh Frozen Foods Exporters Association (BFFEA) have already expressed their concern over the shipping rate hike.