Liberian ship stranded at Ctg port for 3 months as importer declines to receive damaged goods

A Liberian-flagged vessel, MV Mana, carrying 50,071 tonnes of soybeans from Brazil's Santarem Port, has been stranded at Chattogram port since 8 June due to a dispute over the quality of the imported soybeans.

The vessel has already unloaded 30,000 tonnes of soybeans imported by Shabnam Vegetable Oil Industries and Super Oil Refinery Ltd, both owned by TK Group.

However, due to water entering the ship and compromising the quality of the goods, the importer, Delta Agro Food Industries, and the associated declaring agent halted the unloading of the remaining 20,070 tonnes of soybean.

As a result, the Liberian-flagged bulk carrier has been stranded at Chattogram port for the past three months.

According to the ship's owner, Active Maritime Ltd, and its P&I (Protection and Indemnity) company, the vessel has been counting at least $15,000 daily in charter fees due to the importer and declaring agent's non-cooperation.

On 6 September, the ship's owner and captain sought intervention from Chattogram port authorities and Customs to resolve the issue. Representatives have already met with the port chairman and the Customs commissioner to discuss the issue on 10 September.

Captain Andonov Yordan of MV Mana, in a letter to the Chittagong Port Authority chairman and the Customs commissioner, stated, "The receivers have a legal duty to take delivery of cargo and submit any claim they may have after taking delivery of all cargo but instead of performing their obligation they are making unlawful demands and pressurising the owners to pay huge amount of money before they take delivery of cargo.

"This is clearly an act of extortion, and it tarnishes the image of Bangladesh and Chittagong Port for a vessel to remain in port for nearly three months as a result of the action of receivers who are refusing to take delivery or to abandon the cargo."

Mohammad Mustafa Haider, chairman of Delta Agro Food, told The Business Standard, "A commercial dispute has arisen due to the damage to the goods."

"The responsibility for the damaged goods lies with the shipowner as they are the custodian of the cargo. This matter is currently in mediation," he added.

He further mentioned that the soybeans already unloaded had quality issues as well.

According to Seacom Group, the importer's declaring agent, the value of the cargo is $440 per tonne, bringing the total value of the 20,070 tonnes of soybeans to $8.83 million.

Zahur Ahmed, director at Seacom, told TBS, "The quality dispute arose due to water entering the ship's hatches, and the shipowner's delays have prolonged the issue. However, their representative has arrived in Bangladesh, and discussions with the cargo receivers are ongoing. We expect a resolution within a week."

A survey conducted on 11 June by the ship's P&I correspondent, Interport, confirmed water damage to the cargo and recommended manual separation of the affected soybeans, which was not done.

As a result, the goods have continued to deteriorate over the last three months.

According to officials associated with the ship, initially, salvage teams had offered to buy the soybeans for $300 per tonne, but due to the lack of response from the importer and declaring agent, the deal could not proceed.

Now, it would be hard to sell these soybeans for even $100 per tonne, they further said.

Regarding how the damage had taken place, the ship's P&I correspondent told TBS that the Liberian vessel came under stormy weather at sea, which caused water to enter three of the five hatches on the ship. It also mentioned that the covers of the three hatches were damaged from before.

Shipping industry insiders have expressed concern over the unprecedented delay, warning that such incidents could negatively affect the reputation of Chattogram port. They urged the port and customs authorities to intervene and expedite the resolution of the dispute.

Syed Mohammad Arif, chairman of the Bangladesh Shipping Agents Association, said, "As long as the ship remains stranded, costs continue to accumulate. The relevant parties must adopt a positive attitude to resolve this issue quickly."

CPA Secretary Md Omar Faruk confirmed receiving a letter from the shipowner and clarified that the issue falls under the jurisdiction of the importer, shipping agent, and P&I club.

Once customs clearance and other formalities are completed and the port's dues are paid, the port authority will issue a no objection certificate for the vessel to depart, he said.

Panama-flagged ship stuck for seven months

Meanwhile, a Panama-flagged bulk carrier, Konkar Theodoros, has been stranded at Chattogram port for seven months due to complications with the letter of credit (LC).

The ship, carrying 58,900 tonnes of raw sugar imported by Abdul Monem Group, still has 14,000 tonnes of cargo stuck on board.

According to Abdul Monem Group, they have faced significant financial losses as Islami Bank was unable to issue the LC needed to clear the goods.

Over time, the company managed to open LCs with other banks, allowing them to unload 45,000 tonnes of raw sugar. However, there is no clear timeline for when the remaining 14,000 tonnes will be unloaded.

The ship arrived at Chattogram port on 7 February, after departing from Brazil's Rio de Janeiro Port with raw sugar.

Abdul Monem Group's Head of Commercial Aziz Chowdhury told TBS, "Islami Bank was unable to issue the LC's due to the recent dollar shortage and other internal complications."

"However, the new management of Islami Bank has assured us that the remaining LC will be issued soon, allowing us to unload the final 14,000 tonnes," Aziz added.

Each metric tonne of sugar was valued at $632, meaning the remaining goods are worth approximately $8.84 million. The ship's daily charter fee amounts to around $20,000, leading to an additional cost of roughly $4.2 million over the past seven months.