Vessel congestion at Chittagong port

The shipping ministry should take steps to immediately resolve the problem

The unending dilemma surrounding the Chittagong port was so far noticeable in handling thousands of tons of cargo, and now congestion of container vessels has been added to the woe. Congestion of container vessels at the outer anchorage of the Chittagong port has not only appeared costly for traders and consumers, but has visibly blocked the smooth flow of operational activities. For being anchored for a lengthier period, a container vessel is forced to fork out $7,000 to $ 12,000 every day as demurrage. Most vessels are being forced to berth for at least 12 to 15 days while the normal turnaround time is two to three days.

Additionally, there is also a lack of enough berths for the vessels to dock. All in all, the port is now facing a situation that has built up a queue of vessels waiting to get berth. This has been going on since last May. We came to learn that shipping liners are forced to pay steep demurrage for goods to be unloaded after berthing at docks. This has prompted shipping liners plying the Singapore-Chittagong route to raise price per container by USD 150 because of the congestion.

Indeed the traffic has cut down shipments by liners on this route to one shipment (as opposed to two earlier) per month. Notably, the persistent vessel congestion will put the country’s number one export sector the RMG industry in jeopardy – it is already going through testing times. A bulk portion of the imported containers is carrying raw materials of readymade garments like cloth, cotton, yarn, button and other accessories. The shipping ministry should take steps to immediately resolve the problem.

The point, however, we did not arrive at this situation in a day. The problems relating to poor infrastructure have been accruing over the years. The number of jetties has remained the same since 2007, while import volume has risen from 1 million to 2.4 million containers as of the last fiscal year.

We call for taking immediate measures to ease the vessel congestion at Chittagong port for the sake of the country’s economy. Authorities concerned should particularly stress on procuring port equipments, quick off-docking of auction goods, instant goods delivery, increasing number of scanners and adding skilled manpower to address the manpower crisis in Chittagong Customs to get rid of the crisis. For the longer term, the port authorities should also make room for anchoring more ships and vessels in the anchorage area.

Vessel congestion at Chittagong port

The shipping ministry should take steps to immediately resolve the problem

The unending dilemma surrounding the Chittagong port was so far noticeable in handling thousands of tons of cargo, and now congestion of container vessels has been added to the woe. Congestion of container vessels at the outer anchorage of the Chittagong port has not only appeared costly for traders and consumers, but has visibly blocked the smooth flow of operational activities. For being anchored for a lengthier period, a container vessel is forced to fork out $7,000 to $ 12,000 every day as demurrage. Most vessels are being forced to berth for at least 12 to 15 days while the normal turnaround time is two to three days. Additionally, there is also a lack of enough berths for the vessels to dock. All in all, the port is now facing a situation that has built up a queue of vessels waiting to get berth. This has been going on since last May. We came to learn that shipping liners are forced to pay steep demurrage for goods to be unloaded after berthing at docks. This has prompted shipping liners plying the Singapore-Chittagong route to raise price per container by USD 150 because of the congestion. Indeed the traffic has cut down shipments by liners on this route to one shipment (as opposed to two earlier) per month. Notably, the persistent vessel congestion will put the countrys number one export sector the RMG industry in jeopardy it is already going through testing times. A bulk portion of the imported containers is carrying raw materials of readymade garments like cloth, cotton, yarn, button and other accessories. The shipping ministry should take steps to immediately resolve the problem. The point, however, we did not arrive at this situation in a day. The problems relating to poor infrastructure have been accruing over the years. The number of jetties has remained the same since 2007, while import volume has risen from 1 million to 2.4 million containers as of the last fiscal year. We call for taking immediate measures to ease the vessel congestion at Chittagong port for the sake of the countrys economy. Authorities concerned should particularly stress on procuring port equipments, quick off-docking of auction goods, instant goods delivery, increasing number of scanners and adding skilled manpower to address the manpower crisis in Chittagong Customs to get rid of the crisis. For the longer term, the port authorities should also make room for anchoring more ships and vessels in the anchorage area.