Chittagong Port Hikes Rates Sharply for the First Time in 40 Years
Publish Time: 2025-10-23 Origin: Site
The Chittagong Port Authority (CPA) has increased port rates for the first time in four decades, with an average hike of 41%. This move is like a boulder thrown into Bangladesh’s maritime and logistics industry, causing ripples.
According to Breakbulk.News, since midnight on October 14, 2025, the rate increase has forced shipping companies to impose new surcharges, triggering deep concerns among exporters and trade associations.
Mediterranean Shipping Company (MSC) took the lead in announcing the imposition of a Port Cost Recovery (PCR) surcharge starting October 16, ranging from $100 to $200 per TEU. Specifically, dry cargo containers are charged $100, refrigerated containers $150, and IMO-standard cargo $200. The company stated that the fee applies to all destinations except the U.S. and Far East trade routes, adding that the move is to offset "significant increases in local costs."
Maersk followed closely, raising the Terminal Handling Charge (THC) to $165 for 20-foot containers and $310 for 40-foot containers. CMA CGM and its regional partners CNC and ANL introduced an Emergency Cost Recovery Surcharge (ECRS), charging $45 for 20-foot dry containers, $70 for 40-foot containers, with higher rates for refrigerated containers, oversized cargo, and dangerous goods.
This is exactly the "domino effect" that shippers expected but feared. As a Dhaka freight forwarder put it: "It’s naive to think shipping companies won’t pass on costs when port rates rise by 40%—shippers always end up footing the bill."
CPA’s rate adjustment affects 23 out of 52 port services. Container handling charges alone rose by 37%, with the cost for 20-foot containers increasing from 11,849 Bangladeshi Taka (Tk) to 16,243 Tk. Import containers incur an additional 5,720 Tk per unit, while export containers require an extra 3,045 Tk. For ships delayed by more than 36 hours, vessel waiting fees have surged by up to 900%.
The International Finance Corporation (IFC) now estimates that Chittagong Port, once one of the most affordable in the region, has become the second-most expensive. The average handling and storage cost per container has risen from $126 to approximately $186.
The Bangladesh Shipping Agents Association (BSAA) and other trade bodies are urging the government to reconsider, calling the timing "could not be worse." The ready-made garment (RMG) industry, which accounts for over 80% of total exports, is already grappling with high raw material costs, weak global demand, and the impending end of Least Developed Country (LDC) trade preferences in 2026.
"There’s no buffer left in our profit margins," said a garment exporter. "Every extra dollar in port fees means a dollar less in our competitiveness."
Despite a month-long deadlock with industry groups, shipping advisor (Retd) Commodore M Shahwat Hossain confirmed that the rate hike will proceed as planned. Md Omar Faruk of the Chittagong Port Authority reiterated that shipping agents must now prove they have sufficient funds deposited to cover the new rates before obtaining a No Objection Certificate.