September 03, 2006	Sunday	Sha'aban 9, 1427

CHITTAGONG, Sept 2: Bangladesh's trade shipments ground to a virtual halt on Saturday as shipping companies refused to use the nation's main port in a protest over container fees.

“Most private shipping companies have suspended transporting cargoes to and from Chittagong port,” Chittagong Port Authority chairman Shahadat Hossain said.

The companies launched the protest after the High Court ruled a $130 surcharge they imposed in June on every six-metre-long (20-foot) container transported by the ships was illegal and told them to return the money.

The companies said the surcharge levied on local exporters and importers was needed to recover delay costs caused by “huge” port congestion.

“The ruling made all of us angry. We imposed the surcharge because we were bleeding red due to congestion at Chittagong Port,” said Shahed Chowdhury, a representative of the shipping companies.

“Our ships on Saturday have not loaded any export cargo from Chittagong.

Simultaneously, no import cargo bound for Chittagong Port is being loaded at ports in Singapore, Colombo and Klang,” he said.

All but one company--HRC, the largest Bangladeshi-owned shipping company with 10 ships -- took part in the protest.

Located in south-eastern Bangladesh, Chittagong is the nation's biggest port. In the year ended June 30, the port handled 90 per cent of the country's $24-billion foreign trade.

“An impasse has been created and if it persists it will be a disaster for Bangladesh because the suspension will affect more than 75 per cent of our export and import trade,” Hossain said.

The move alarmed garment manufacturers, whose exports account for over 75 per cent of the country's $10.5 billion export trade and who have been enjoying a recent boom in business.

“It will be a catastrophe if they don't withdraw the suspension order,” leading garment manufacturer Tayeb said.

The Bangladesh Garments Manufacturers and Exporters Association, a trade body of 4,200 garment factories, threatened to file suit against the companies over their action.—AFP