Photo : Messenger
Three ship owners issued a legal notice in November to the Bangladesh Shipping Corporation (BSC), responsible for transporting imported oil on behalf of the Bangladesh Petroleum Corporation (BPC). The notice demands the settlement of an outstanding freight charge amounting to $13 million.
The BSC takes the bills in local currency and pay the freight of the foreign ship in foreign currency. In the last two months, the BSC failed to repay $1,20,05,000 due to dollar crisis.
Although securing a substantial loan of around US$1.40 billion from the Jeddah-based International Islamic Trade Finance Corporation (ITFC) to address increasing oil-import bills, the state-owned corporation is currently grappling with challenges in making regular payments against these import bills.
The Bangladesh Shipping Corporation (BSC) is contemplating alternative options in case the supplier does not agree to provide a ship. In such a scenario, the corporation is considering alternative sources to ensure a stable supply of fuel oil.
BSC Managing Director Commodore Ziaul Hoque told the Daily Messenger “If the supplier companies do not agree to provide the oil transportation support, we will rent the ship from another company for bringing the crude.”
He added, “Now we have given a letter to BPC. They may take some time to get approval from the ministry. Then maybe they will make us clear about the payment schedules.”
According to BSC, the BSC transports the imported fuel of BPC in accordance with the agreement. They take the bills in local currency and pay the freight of the foreign ship in foreign currency. Already, the BSC has communicated with BPC to resolve the crisis.
In the circumstances, according to the circular of Bangladesh Bank on 29 May this year and the and Sonali Bank's circular dated 12 April 2022, the payment can be paid by buying the dollar with forward rate, think BSC official.
On October 1 this year, MT OMERA LEGACY transported 5,700 tonnes of crude at a freight charge of $43,40,204. Subsequently, on November 7, MT DAPHNE brought 8,212 tonnes of Light Crude with a freight charge of $46,86,585. On the same day, MT GAMSUNORO transported 1,900 tonnes at a freight charge of $39,64,074.
However, an issue arose when the owners of these three ships served a legal notice to the Bangladesh Shipping Corporation (BSC) on December 11, stating that they did not receive the freight. This development has created uncertainty for the BSC's supply of fuel oil.
In the fiscal year 2023, the Bangladesh Shipping Corporation (BSC) disbursed $40.34 million as freight for nine mother tankers. Presently, there is an insufficient amount of US dollars in
BSC's funds. During the fiscal year 2022-23, three ships from the BSC fleet are undergoing dry docking in foreign ports, requiring approximately $15 million. However, the Bangladesh Bank has not been able to provide this amount.
Simultaneously, there are arrears of about Tk 3,850 crore owed by oil-supplying companies to the Bangladesh Petroleum Corporation (BPC).
In 2022, imports increased by 22.2 percent, the biggest rise for any Asian country. Prices then sky-rocketed after Russia invaded Ukraine in February 2022, putting a huge strain on Bangladesh's economy.
Messenger/Disha
