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The country's export-import activities are facing severe blow as feeder vessel operators have imposed additional surcharge as congestion in Chittagong port has mounted. The operators have also limited the number of their voyages to the port, industry people said. A West African shipping company has informed the local counterparts that until the situation in Chittagong port returns to normal, it has no other choice but to restrict number of its trips to this destination. "We, therefore, regret to say that we can't accept any more bookings to Chittagong from West Africa for the time-being," the company said. Feeder vessel operators bound for Chittagong from Australia, Singapore and Colombo ports have imposed additional surcharge following the ongoing congestion in Chittagong port, they added. ANL, an Australian shipping company that is also a part of the CMA CGM Group, the third largest container shipping line in the world, has imposed Port Congestion Surcharge (PCS) of $150 per TEU for all imports into Chittagong where congestion is reaching a 'critical level' there. The additional PCS came into effect from July 20. "All shipping lines calling Chittagong terminals are heavily impacted, with vessels waiting for an additional 07 to 10 days on an average above the normal berthing," the ANL said in a notice to its customers. These delays stem from lower yard productivity due to heavily-congested terminal yards, it added. The Asian Feeder Discussion Group (AFDG) has also imposed an 'emergency cost recovery' surcharge of $150 per TEU for laden containers and $75 per TEU for empty containers, effective from July 01, from Singapore/Port Klang and Colombo to Chittagong. Top officials from Spanish fashion retailers Inditex in a meeting held on July 31 with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) leaders expressed concern over the present crises both in airports and Chittagong seaport. The retailer, which has expressed willingness to increase sourcing from Bangladesh gradually, informed that they might re-think over their sourcing decision if the complexities continue in the country's air and seaports. Port conditions in Chittagong have deteriorated causing increased berthing time and poor productivity, they said adding feeder vessel operators have imposed additional charges to compensate the increased operating costs caused by schedule delays, berthing restrictions and reduced load factors. Chittagong port needs 26 gantry cranes whereas it has only four, two of which are now out of order while 52 rubber tyred gantry cranes are required but it has only 23, according to sources. Only 87 container loading and unloading equipments are in operation against the required 299 while 285 cargo handling equipments are functional against the required 895. About 92 per cent of the country's exports and imports are routed through the port while the equipment shortage is severely affecting exports and imports as it causes regular delays in shipment of goods, they added. Textile millers, jute spinners and shippers have expressed their concern over the imposition of additional surcharge while leaders of the country's apparel makers expressed fear of shifting work orders to other competitors. They opined that the ongoing bottleneck in the Chittagong port would severely affect the country's competitiveness in merchandise shipments. Cotton exporters informed the local millers that although Bangladesh is a growing market, its port congestion and lack of direct services add complexity to their supply chains. Bangladesh is now the world's second largest garment exporter and it largely depends on imports of raw cotton. The country is mainly served by feeder services unlike Vietnam and China.  "Following the congestion in Chittagong port, both our imports and exports are seriously affected and it will surely impact our competitiveness," Tapan Chowdhury, president of Bangladesh Textile Mills Association told the FE recently. Supply of raw materials has been affected resulting in a negative impact on production, delivery and finally finished goods shipments, Minhazul Reaz, director of Youth Spinning Mills Ltd, said. The situation might have created an opportunity for Indian yarn to be flooded in the local market, he opined. Siddiqur Rahman, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said if the situation continues to be critical, it would create an adverse impact on the sector as the port handles around 80 per cent of the total apparel exports. It might cause failure in meeting the lead time, resulting in shifting of orders to competitor countries like Ethiopia, India, Myanmar and Vietnam, he said adding the feeder vessels are leaving the port without using their full capacity, which had never happened before. He pointed out that it was the worst congestion created due to the feeder vessels' departure from  the port with less number of containers than their respective capacities. He urged the government to take immediate steps to resolve the crisis for averting possible damage to the export-oriented industry. munni_fe@yahoo.com....

Published at: 2017-08-07 00:00:04

The dollar stood tall on Monday after an upbeat US jobs report lifted it off 15-month lows, with data lined up this week seen as key to whether the greenback's rebound could be sustained in the longer term. The dollar index against a basket of six major currencies was little changed at 93.447.DXY after climbing 0.75 per cent on Friday. The rally pulled it away from 92.548, its lowest level since May 2016 marked on Wednesday. The euro was little changed at $1.1781 EUR= after losing 0.8 per cent on Friday to put some distance between a 2-1/2-year high of $1.1910 scaled earlier last week. The dollar, which briefly sank below 110.00 yen to a seven-week low last week, was up 0.1 per cent at 110.785 yen JPY= after going as high as 111.050 on Friday. Closely watched data released on Friday showed nonfarm payrolls increased by a bigger-than-forecast 209,000 jobs last month, while average hourly earnings increased 0.3 per cent to match expectations after rising 0.2 per cent in June. While the strong jobs data helped the dollar by keeping prospects of a December interest rate hike by the Federal Reserve alive, markets are looking for further evidence of robust fundamentals in order to firm up the US currency's upturn. "This is going to be a crucial week for the dollar. The limited rise by the 10-year Treasury yield despite the strong payrolls shows that concerns towards slowing US inflation still linger," said Junichi Ishikawa, senior FX strategist at IG Securities in Tokyo. "Data such as the producer and consumer price indexes may have to be better than expected to douse inflation concerns. Only then would the dollar reach a real turning point." US producer price index numbers for July will be released on Thursday and the consumer price index figures are due on Friday. The 10-year Treasury note yield US10YT=RR stood at 2.269 per cent, pulling back slightly from Friday's high of 2.290 per cent. The Australian dollar was little changed at $0.7931 AUD=D4 having lost about 0.7 per cent last week against the broadly higher dollar. The pound was flat at $1.3043 GBP=D3. Friday's dollar surge deepened losses for sterling, which was already on the back foot after the Bank of England kept rates unchanged on Thursday and delivered a dovish message. It has slid sharply from a 13-month peak of $1.3267 set earlier last week.   ....

Published at: 2017-08-07 00:00:04

Asian stocks advanced on Monday, taking their cue from Wall Street, while the dollar moderated but retained most gains made on stronger-than-expected July jobs growth and the promise of a US tax plan that will repatriate corporate profits. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.5 per cent. Japan's Nikkei was up 0.6 per cent. Chinese blue chips rose 0.1 per cent, while the Shanghai Composite was flat. Hong Kong's Hang Seng climbed 0.4 per cent. South Korea's KOSPI was up 0.5 per cent, while Australian shares surged 1 per cent. The dollar moderated on Monday following a strong climb on Friday after data showed US nonfarm payrolls rose by 209,000 jobs last month, and June's employment gain was revised higher. Growing signs of labour market tightness offer Federal Reserve policymakers some assurance that inflation will gradually rise to the central bank's 2 per cent target, and likely clear the way for a plan to start shrinking its massive bond portfolio. The dollar was also buoyed by comments from National Economic Council director Gary Cohn that the US administration is working on a tax plan that would bring corporate profits back to the United States. But the pull back in the dollar backs some views in markets that Friday's rally may not have legs yet. The dollar index, which tracks the greenback against a basket of six global peers, inched back 0.2 per cent to 93.343. It rallied 0.76 per cent on Friday, its biggest one-day gain this year. The dollar slipped 0.2 per cent against the euro to $1.17985 per euro, after surging 0.8 per cent on Friday. The greenback rose 0.1 per cent to 110.78 yen, extending Friday's 0.6 per cent gain. "The most logical view here is the moves on Friday were clearly just a sizeable covering of USD shorts, from what was one of the biggest net short positions held against the USD for many years," Chris Weston, chief market strategist at IG in Melbourne, wrote in a note. For the dollar rally to gain momentum, the market needs to change its interest rate pricing, and that hasn't happened yet, Weston added. Markets are pricing in about an even chance of a US interest rate hike in December. Benchmark 10-year US Treasury notes inched back slightly to 2.2673 per cent. They closed at 2.269 per cent on Friday, up from Thursday's close of 2.228 per cent. The lift in sentiment from Friday's jobs data also supported Wall Street. The Dow closed 0.3 per cent higher, its eighth consecutive record high. The S&P and Nasdaq ended the session up 0.2 per cent. The Australian dollar strengthened 0.2 per cent to $0.7945. In commodities, oil prices edged lower but retained most of Friday's gains, posted as the strong jobs data bolstered hopes for growing energy demand. Officials from a joint OPEC and non-OPEC technical committee are set to meet in Abu Dhabi on Monday and Tuesday to discuss ways to boost compliance with their supply reduction agreement. US crude slipped 0.1 per cent to $49.53 a barrel on Monday, after rising 1.1 per cent on Friday. Global benchmark Brent also lost 0.1 per cent to trade at $52.37, after Friday's 0.8 per cent gain. Gold steadied as the dollar surrendered some of its gains, but remained under pressure. The precious metal was marginally higher at $1,258.38, failing to make up most of Friday's 0.8 per cent loss.  ....

Published at: 2017-08-07 00:00:04

RAJSHAHI, Aug 05 (BSS): The Barind Multipurpose Development Authority (BMDA) has realised around Tk 1.50 billion as irrigation charge during the last 2016-17 fiscal, less by Tk 83.3 million over the 2015-16 fiscal. According to the sources concerned, over 0.62 million hectares including 0.29 million hectares of Irri-Boro lands were brought under irrigation facilities through operating 15,517 power-driven deep tubewells (DTWs) in almost everywhere in the country's northwest region. The irrigated lands have yielded more than 3.5 million tonnes including 2.7 million tonnes of additional crops especially food grain in the region especially the vast Barind tract yearly. Engr Abdur Rashid, executive director of BMDA, told the news agency that the region scored significant progress in the crop production sector following the expansion of irrigation facilities along with supplying water from the re-excavated canals and ponds. Even around 25 to 30 years back, only a single crop could be produced in the areas depending on the rainfall. But, at present, at least three crops are being harvested by dint of the expanded irrigation facilities. Around 58.15 per cent area of the total cultivable lands of the region has, so far, been brought under the irrigation facilities. Prior to the inception of BMDA the number of DTWs was only 500 in total irrigated area of about 5,000 hectares. At that time, the farmers had to depend on the mercy of rainwater for the cultivation. Now, the number of DTWs has increased to 15,517 in the command areas irrigating 0.33 million hectares of crop lands round the year benefiting more than 0.54 million farming families. In addition to the irrigation activities, the BMDA has been implementing various need-oriented uplift programmes aimed at improving the socioeconomic conditions by increasing crop production side by side protecting the region from adverse impact of the environment. It has already executed 32 projects under its command areas since 1985-86 to 2015-16. Currently, 11 other projects are being implemented in different districts where around 60 per cent of the total work has been completed while the rest is expected to be executed in phases by June 2020. Abdur Rashid mentioned that some of the projects had initially been executed with the government funds. But, now the BMDA has been implementing the projects with its own funds along with payment of monthly staff salaries since the last couple of years. "We have revived and activated 4,232 non-functional deep tube wells in the region in different phases," he said. Additional 2.44 million tonnes of food grain is expected to be produced in the region if the rest 0.58 million hectares of non-irrigated land were brought under irrigation. Till last June, the BMDA installed 11550 deep tube-wells and 221 low lift pumps, re-excavated 1838.77-kilometer canal, reactivated 4263 inoperative DTWs, re-excavated 3078 khash ponds and constructed 1004 water distribution infrastructures alongside 1,447 drinking water supply installations and 155 dug wells and 726 cross-dams, which ensured a sound irrigation system. In addition to imparting training to some 1,43,397 farmers, around 25.6 million saplings of various fruit, timber and herbal trees were planted in the command area to protect environment and meet the growing demands for fruits and timber in the region. Meanwhile, implementation of the projects has yielded a significant success in crop production and making an ecological balance. "The projects are creating jobs for the unemployed people and also ensuring various facilities along with an environment-friendly weather in the region," said the BMDA chief.....

Published at: 2017-08-06 00:00:04

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Published at: 2017-08-06 00:00:04