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The port continues to be congested, and many shipping companies have suspended cargo pick-up

Aug 15, 2024|View:3

Severe congestion at Bangladesh's ports has continued to intensify over the past week.

As of Tuesday, there were currently more than 20 container ships waiting to berth in Chittagong, with the average delay rising to 7-10 days, according to container shipping analytics firm Linerlytica.

According to reports, the container ship "Sol Promise" arrived at the Chittagong outer anchorage on August 4 with cargo imported from Colombo. However, it was not until the 13th that the ship showed berthing status. According to the media, the delay will cost at least $1.5 million in demurrage.

A number of shipping companies have suspended cargo acceptance

Maersk recently confirmed in its official announcement that although Chittagong, the largest port in Bangladesh, has reopened operations, the transshipment and processing of containers has been slow due to a serious shortage of on-site staff. The company further emphasized: "The current situation is extremely volatile and continues to be in a dynamic state of flux.

Chinese freight service providers have told the media that although Chittagong has remained operational, the port congestion has not eased, and some consignees have chosen to cancel orders for goods destined for Chittagong, coupled with ongoing domestic unrest. In addition, the unrest also spilled over into the rail transport system, further exacerbating the problem of transporting goods at the port.

In view of this, a number of container shipping companies have taken temporary measures to suspend the acceptance of cargo orders to Dhaka, the capital of Bangladesh, in response to the current complex and uncertain logistics environment.

Containers continue to be stranded

Despite the improvement in road traffic since the formation of the interim government, the problem of container congestion in Chittagong has not eased. Port container deliveries remained below normal, with only 3.516 TEU delivered on August 12 and 3.265 TEU on August 11.

Currently, 43.941 TEUs are stored in the port yard with a storage capacity of 53.518 TEUs, but a load of 30.000 to 32.000 TEUs is ideally required for optimal operation.

The Bangladesh government has waived demurrage at the end of July, but only in the country's vital garment sector.

Chittagong Port Authority Secretary Mohammed ·Omar · Farouk said that while container congestion is gradually easing, it may take another seven to 10 days to return to normal levels.

In order to alleviate container congestion at the port, the authorities require importers to pick up their goods on Fridays, Saturdays and Sundays in addition to their normal working days.

Chittagong export container throughput declined

Chittagong's export container throughput fell 16.4% month-on-month in July to 59.845 TEUs (TEU) from 69.662 TEUs in June due to ongoing unrest.

Maritime congestion and slower unloading rates do not appear to have had an impact on total imports, with the port importing 114.455 TEUs in July, down 0.1% from 114.591 TEUs in the previous month.

The protests, which originated in early July, were initially triggered by a controversial government job quota system, and then quickly spread and escalated into nationwide riots. In response, the Bangladeshi government imposed several curfews and temporarily suspended broadband connectivity from around July 20. but gradually resumed these services in the following days.