Bangladesh’s export-oriented ready-made garment (RMG) industry has slammed the Chittagong Port Authority’s (CPA) newly imposed 41% average tariff hike as a “bad omen”, warning it will erode the country’s global competitiveness at a time when buyers are already shifting orders to rival nations.
The fee revision, published in a gazette notification on Sunday (Sept 14) and effective from Monday (Sept 15), includes a 37% increase specifically for container handling, the lifeblood of Bangladesh’s $47 billion RMG export machine.
Industry leaders accuse the port authority of ignoring stakeholder feedback and acting unilaterally. A high-level meeting held on August 25 at the Ministry of Shipping chaired by Shipping Adviser Brig Gen (Retd) Sakhawat Hossain ended without consensus, with traders pleading for a cap of 10%. Their appeals were disregarded.
‘Who’s running the govt?’
“We don’t understand who is currently running the government authorities,” said Rakibul Alam Chowdhury, BGMEA Director from Chattogram and Managing Director of HKC Apparels Limited.
“Exports aren’t growing at the pace these hikes demand. Has the port considered that our global competitors Vietnam, India, Cambodia are gaining ground while we’re raising costs?”
Chowdhury warned the full impact will hit from January 2026, when global buyers reassess sourcing strategies.
“America’s new tariffs on India will push Indian exporters toward Europe, our biggest RMG market. If European buyers pivot to India, we’re in serious trouble. This fee hike adds fuel to that fire.”
He added: “We’ve formally requested the port to reconsider. If the RMG sector stumbles, the entire national economy will tremble.”
Port ‘profits while exporters bleed’
Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), called the hike “illogical and unjustified.”
“Chittagong Port is not a profit-driven corporation — it’s a public service institution. Yet, it has recorded consistent profits for years. Why impose a 41% hike now, without transparent justification?”
Hatem recalled the August 25 meeting: “We told the Adviser the proposed rates were unreasonable. The port officials couldn’t defend them. Now, the RMG sector, the port’s largest user, will bear the heaviest burden. Our production costs are already rising. This will make us even less competitive.”
By the numbers
Previous TEU (20-foot container) handling fee: Tk 11,849
New fee: Tk 16,243
Increase per container: Tk 4,395 (37%)
With over 90% of Bangladesh’s exports flowing through Chittagong Port and RMG accounting for 84% of total exports even marginal cost increases ripple across the economy.
What’s at stake
Industry insiders say the fee hike comes at the worst possible time:
Global buyers are demanding lower prices amid inflation.
Bangladesh is racing to retain market share against India and Vietnam.
Local manufacturers are already grappling with high energy, labour, and compliance costs.
“This isn’t just a port issue. It’s a national economic risk,” Hatem emphasized. “We urge the government to review this gazette immediately.”
As containers pile up and exporters scramble to recalculate margins, one message is clear: without urgent intervention, Bangladesh’s crown jewel industry may face its toughest year yet.
