Holiday blues hit Ctg port: Containers pile up amid slow goods delivery

Highlights

• 26,000 FCL containers piled up due to slow deliveries on weekends, holidays
• Essential goods at risk of a disrupted supply chain
• CPA urges importers to take delivery during holidays to avoid congestion
• Importers struggle with closed factories, warehouses, and limited transports during Eid
• Collaboration between port, businesses, and logistics needed to ensure smooth operations  

Chattogram port is experiencing a surge in container pile-up as importers have slowed down taking deliveries of their products significantly during weekends and holidays ahead of Eid-ul-Fitr.

The slower deliveries have led to a growing stack of over 26,000 twenty-foot equivalent unit (TEU) full container load (FCL) containers with imported goods at the port yard before Eid. 

Even though port operations continue during Eid holidays, goods delivery comes to a near standstill, raising fear of huge container congestion and disruptions in the supply chain of essential goods and potential price hikes.

The goods in the containers include consumables, frozen food, and industrial raw materials.

Not only FCL containers, the imported goods coming in less than container load– (LCL) containers (containers containing products from multiple importers) also accumulate in different sheds of the port. FCL containers contain products from a single importer. 

As of 4 April, the port yard holds 29,056 TEU containers against its capacity of 53,518 TEU.

This accumulation will lead to congestion in the port yard, hindering efficient operations, and overflowing storage sheds with piles of goods.

Stakeholders said the congestion could disrupt the supply chain of essential goods, potentially leading to price instability. They emphasised the importance of keeping port activities dynamic to maintain a healthy economy.

Chattogram Port Authority (CPA) Secretary Md Omar Farooq told TBS there is no alternative to keep the delivery activities as usual to keep the activities of Chattogram Port dynamic. After the containers are unloaded from the ship to the yard, if they are not delivered promptly, there will be a mess.

The CPA urged importers to take delivery of their goods even during public holidays to maintain smooth port operations and prevent congestion. To stabilise commodity prices, delivery of consignments stored at yards and container freight stations (CFS) should be increased.

However, importers cited factory and warehouse closures during Eid as obstacles to receiving and storing goods. Additionally, restrictions on truck movement around the holidays further complicate deliveries.

Collaboration needed to ensure smooth operations

The port authority is working with business chambers like the Chattogram Chamber of Commerce and Industry to encourage importers to take delivery of their goods promptly. 

They sent a letter to relevant business organisations, including Chattogram Chamber, BGMEA, and C&F Agent, requesting to take delivery of containers on public holidays.

Both parties acknowledge the need for collaboration to maintain port efficiency and minimise disruptions to the national economy.

Bangladesh Knitwear Manufacturers and Exporters Association Director Mohammed Shamsul Azam told TBS that following Eid, garment owners prioritise receiving imported products due to the delayed start of factory production. Only export goods are sent to depots for shipping, then transported to the port based on the ship's schedule.

Chattogram Chamber President Omar Hazzaz told TBS that maintaining dynamic port activities is vital for sustaining the country's economy. Prolonged storage of goods at the port not only incurs damage but also disrupts its efficiency.