A central bank order over enhancement of shipping agents' commission has been unimplemented for the last one year.
Many shipping agents opined that if the increased rates are applied, the foreign shipping owners would raise freight charges for Bangladesh-bound goods, which may escalate inflation.
The Bangladesh Bank (BB) Foreign Exchange Policy Department issued the circular in March 2021, amending the old guideline. It raised the commission for local part on freights that may be 150 per cent over the existing ones.
The shipping agents, who handle containers in Bangladesh in favour of the foreign ship owners, want to calculate commission on net freights, while the BB favours gross freights.
They said the circular was issued illegally and arbitrarily on the basis of unilateral issuance of regulations - without proper justification of associated cost and taxes, which was totally impractical.
The shipping agents opined that the foreign ship owners or principles were objecting it, as it would raise freights for Bangladesh-bound goods.
The FE has obtained a number of letters - written to the BB governor regarding the matter.
A latter, issued in February 2022, said the central bank issued the order based on misconceptions on freights.
The agents noted that gross freight includes not only fee payable to the ship-owners for carriage but also all charges concerned, like - corridor charge, seal surcharge, documentation fee, carrier ISPS security charge, bunker charge, arbitrary charge, terminal handling charge, and charge for fuel adjustment factor. They also said the order is applicable only for handling containers, but there are bulk carriers and oil tankers, which remain outside the order.
Besides, income of the shipping agents comes from ocean freight only, whereas they have to bear other costs, involving total transportation, they added.
"The shipping agents can only pay commission on their net income. Under no circumstances the commission should be calculated on other charges, which are our expenses for business purposes," the letters reads.
