Container berth operators at Chattogram Port have sought an adjustment of their contract rates following a 69 percent rise in diesel prices since they submitted bids for their existing contracts in January 2022.
The Bangladesh Ship Handling and Berth Operators Association made the demand in a letter to Chattogram Port Authority Chairman Rear Admiral S M Moniruzzaman on Monday, saying the latest Tk20-per-litre increase has made the existing container handling rates financially unsustainable.
Diesel prices rose to Tk135 a litre from Tk115 on Sunday, taking the price up by Tk55, or 68.75 percent, from the Tk80 prevailing when the operators submitted their bids in January 2022.
The operators said their bids were prepared based on the fuel and commodity prices prevailing at the time when the port authority invited tenders under the Open Tendering Method on January 19, 2022.
“An abnormal increase in fuel costs” has placed berth operators under severe financial pressure, making it difficult to continue operations under the existing rates, association President Fazle Ekram Chowdhury said in the letter.
The association said diesel prices first increased by Tk34 a litre in August 2022. The operators subsequently sought adjustment of their contract rates to reflect the higher fuel costs, but said no action was taken on the request.
Diesel prices later increased by another Tk15 a litre before the latest Tk20 hike, taking the cumulative increase from the tender-stage price to Tk55 a litre.
The operators said container handling operations are heavily dependent on fuel-powered transportation and equipment, making diesel price increases a direct addition to their operating costs.
They urged the port authority to revise the existing container handling rates in line with the rise in fuel prices, saying fuel costs have already been adjusted in various other sectors.
The association also said the repeated increases in operating costs were putting pressure on berth operators at a time when they were dealing with changes in cargo allocation under port handling contracts.
The letter was also sent to the port authority’s Traffic Director for information.
The operators’ latest demand is specifically for a fuel-linked adjustment to existing container handling contract rates rather than a general revision of port charges.