Shipping law in Bangladesh combines admiralty jurisdiction, merchant shipping regulation, the law of carriage and insurance, port and customs rules and the general law of contract. Almost all of the country's seaborne trade passes through Chattogram, with Mongla and Payra handling a growing share, so disputes over vessels, cargo and freight are a constant feature of commercial life for importers, exporters and the lines that serve them.

The key instruments include the Admiralty Court Act 2000, the merchant shipping legislation administered by the Department of Shipping, sea carriage rules based on the Hague Rules, the Customs Act 2023, the Contract Act 1872 and the Arbitration Act 2001. Much of the substance reflects English maritime principles, but procedure and enforcement follow local practice.

The Department of Shipping, under the Ministry of Shipping, oversees ship registration, seafarer certification, safety and flag-related approvals. The Chittagong Port Authority, Mongla Port Authority and Payra Port Authority control their ports, including berthing, pilotage, charges and terminal concessions. Inland waterways and river terminals fall under the Bangladesh Inland Water Transport Authority, while inland vessels are registered and surveyed under separate inland shipping legislation.

On the trade side, the National Board of Revenue administers customs and VAT through its customs houses, the Ministry of Commerce sets import and export policy, and the Office of the Chief Controller of Imports and Exports issues the registration certificates traders need. Bangladesh Bank regulates letters of credit, foreign exchange and the remittance of freight and charter hire. Each regulator issues its own orders and circulars, so shipping law in Bangladesh must be checked against the current text for any transaction.

Vessels may be registered under the Bangladesh flag subject to ownership and documentation requirements set by the merchant shipping legislation. Flag protection rules reserve a share of seaborne cargo for Bangladeshi-flagged ships, and shippers using foreign tonnage for covered cargo may need a waiver from the Department of Shipping. This feature of shipping law in Bangladesh affects charter structures, freight pricing and documentary credit terms.

Ship finance usually rests on a registered mortgage over the vessel, assignments of earnings and insurances, and guarantees. A mortgage registered in a foreign registry can still be enforced in Bangladesh by arresting the vessel when it calls, and the admiralty court will consider ranking between mortgagees, maritime lien holders and other claimants.

Under shipping law in Bangladesh, admiralty jurisdiction is exercised by the High Court Division of the Supreme Court under the Admiralty Court Act 2000. The Act lists the maritime claims that support an action in rem, including claims for damage, salvage, towage, necessaries and bunkers, cargo loss, crew wages, disbursements and mortgages. A claimant can apply to arrest the vessel to obtain security, and the court can order sale if the claim is not secured or paid.

Speed and accuracy matter. The application must identify the claim, the vessel and its location, and be supported by documents showing a genuine maritime claim. Once a ship is arrested, owners and their P&I club usually seek release by providing security, typically a local bank guarantee or, where the claimant agrees, a club letter of undertaking.

Shipping law in Bangladesh gives owners several tools against unjustified arrest. A caveat against arrest can be lodged in some situations, the court may require counter-security from a claimant, and an owner who suffers loss from an arrest made in bad faith or with gross negligence can pursue damages. These remedies are used sparingly but shape how claims are framed.

For claimants, the priority is to avoid over-securing a claim and to keep the evidence ready, because a weak application can unravel quickly once the owner appears. For owners and charterers, it is to respond within the first day, check whether the claim is genuinely maritime and whether the right vessel has been arrested, and agree release terms that do not concede jurisdiction over the merits if an arbitration clause applies elsewhere.

Cargo claims are among the most common disputes under shipping law in Bangladesh. Carriage of goods from Bangladeshi ports is governed by sea carriage rules based on the Hague Rules, while inbound carriage often depends on the law and terms stated in the bill of lading, which may incorporate the Hague-Visby or other regimes. Carrier defences, package limitation and the one-year time bar commonly determine the outcome before the merits are reached.

Practical problems include delivery without original bills, release of cargo against letters of indemnity, disputes between master bill and house bill holders, and claims against freight forwarders acting as contractual carriers. Claimants should arrange a joint survey promptly, preserve tally and outturn records from the port, identify the contracting carrier correctly and protect time, whether by suit, arrest or an agreed extension.

Bulk imports of grain, fertiliser, coal, cement clinker and fuel commonly move under voyage charters, while container trades generate disputes over detention and storage charges. Charterparties typically choose English law and London arbitration, sometimes Singapore. Courts applying shipping law in Bangladesh generally respect those clauses, and a party sued locally in breach of an arbitration agreement can apply for the proceedings to be stayed under the Arbitration Act 2001.

Laytime and demurrage disputes often turn on notices of readiness, anchorage congestion at Chattogram, customs and port delays, and the allocation of those risks in the charter. Receivers and charterers should keep statements of facts, port logs and correspondence, and check whether time bars in the charter apply. Where the counterparty has no assets abroad, local security through arrest or attachment may be worth more than an award.

Logistics in Bangladesh involves a chain of licensed operators: shipping agents, clearing and forwarding agents licensed by customs, freight forwarders, inland container depots, bonded warehouses and road and rail carriers. Each link carries its own regulatory requirements and contract terms. Investors in terminals or depots also deal with concession and lease terms set by the port authorities, as well as environmental and fire safety approvals.

Commercial disputes in this area frequently concern lost or damaged containers, port rent and storage charges, misdeclaration penalties passed on by customs, and liability caps in standard trading conditions. Road carriage is subject to the Road Transport Act 2018, and liability for loss in transit will often depend on the carrier's terms and the evidence available.

The Customs Act 2023 replaced the earlier customs legislation and governs import and export clearance, valuation, classification, penalties and appeals. Disputes over HS classification and transaction value are frequent, and assessments can delay release of cargo at significant cost. Importers should keep a documented basis for classification and valuation, use advance ruling or review mechanisms where available and track appeal deadlines closely.

Most trade is financed through letters of credit issued under Bangladesh Bank rules and governed by UCP 600. Disputes arise over discrepancies, late payment, fraud allegations and attempts to stop payment by injunction. Where payment is refused, the claim may lie against the issuing bank, the applicant or both, often in the Artha Rin Adalat or by arbitration.

In marine insurance, an important adjunct to shipping law in Bangladesh, cargo cover for imports is typically written by local insurers regulated by the Insurance Development and Regulatory Authority, while hull, machinery and P&I cover for ocean-going ships is normally placed internationally. Coverage disputes commonly concern the cause of loss, warranties, sue and labour obligations and the insured's duty to preserve recovery rights against carriers.

When an insurer pays a cargo claim, it will usually pursue a subrogated recovery against the carrier, forwarder or port operator. That makes early coordination between the insured, the surveyor, the insurer and lawyers essential, because recovery depends on protecting time and evidence. P&I clubs play a central role in arrests, crew claims, pollution and wreck incidents, and their letters of undertaking are often the fastest route to release.

Foreign owners, operators and logistics investors should consider how shipping law in Bangladesh interacts with tax, foreign exchange and investment rules. Freight earned by non-resident shipowners and charterers on cargo loaded in Bangladesh is subject to a special basis of income taxation under the Income Tax Act 2023, collected through the local agent. Freight, hire and demurrage remittances require documentation acceptable to the remitting bank.

Investors establishing shipping agencies, depots, logistics companies or yards will usually incorporate locally and register with Invest Bangladesh, the agency that took over the functions of BIDA and BEZA in 2026, as well as obtaining sector licences from customs, port authorities or the Department of Shipping. Competition law under the Competition Act 2012 can also be relevant to alliances, slot-sharing arrangements and pricing in concentrated trades.

Bangladesh has a substantial ship recycling industry around Sitakunda and a growing shipbuilding sector building coastal, inland and export vessels. Ship recycling is regulated under the Bangladesh Ship Recycling Act 2018, and Bangladesh has acceded to the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, which entered into force in 2025. Yards need facility authorisation, and each vessel requires an approved recycling plan.

For buyers and sellers of end-of-life tonnage, key legal issues include title and encumbrances on the vessel, flag and deletion certificates, hazardous materials inventories, customs import formalities and payment security through letters of credit. Shipbuilding contracts raise questions of stage payments, refund guarantees, delay, defects and class approval, and need a carefully drafted arbitration clause.

Disputes under shipping law in Bangladesh are resolved through admiralty proceedings in the High Court Division, ordinary civil suits, Artha Rin Adalat proceedings for bank-related claims, and arbitration, either domestic under the Arbitration Act 2001 or abroad. Bangladesh is a party to the New York Convention, so foreign awards, including London and Singapore maritime awards, can be enforced locally, subject to the statutory grounds for refusal.

The most effective strategy usually combines a local step, such as arrest, attachment or an injunction, with proceedings in the contractual forum. Coordinating the two requires attention to jurisdiction clauses, the wording of security and the risk of parallel proceedings. We advise clients on shipping law in Bangladesh with that full picture in mind, working with maritime counsel in the UK, Singapore, the UAE and other centres where the dispute requires it.