Empty container congestion puts Ctg Port in trouble 

CHATTOGRAM Aug 1: Empty container congestion at Chattogram Port is driven by strict bonded-area storage limits, slow off-dock transfers, and last-minute vessel loading demands, prompting trade bodies to push for non-bonded storage permissions.

Regulations currently block main line operators and shipping agents from storing empty containers outside licensed bonded facilities.

Accumulated empty boxes take up vital space, slowing down full container load (FCL) deliveries and new cargo stacking.

In this connection, the Chattogram Port Authority (CPA) and the major trade apex body,  Chittagong Chamber of Commerce and Industry (CCCI) preferred privileges of storage empty containers outside the bonded-areas.

 CPA, CCCI call for non-bonded storage facilities 

The major sea port of the country Chattogram Port is facing operational disruptions due to an unusual rise in the number of empty containers stored in its yard, prompting the authorities to consider a rent increase to curb the problem.

In a bid to ensure smoother operations and faster service for importers, the Port Authority urged the National Board of Revenue (NBR) to take immediate measures to remove empty containers from the yard.

Meanwhile, the Chattogram Port Authority (CPA) in a letter on July 26 requested the NBR to grant permission for shipping agents and Main Line Operators (MLOs) to store and shift empty containers to non-bonded areas outside their licensed facilities.

CPA opined that the operational efficiency of Chattogram Port is heavily challenged due to an accumulation of surplus empty containers occupying valuable yard space. 

“To maintain smooth port operations and unhindered export-import activities, the CPA strongly feels the necessity of allowing shipping agents and MLOs to store empty containers in suitable non-bonded areas outside their regular bonded licensing parameters" CPA mentioed.

Besides, the apex trade body of the businessmen the Chittagong Chamber of Commerce and Industry (CCCI) has asked Finance and Planning Minister Amir Khosru Mahmud Chowdhury to intervene. In a 30 July letter, CCCI President Mohammed Amirul Haque urged the minister to direct the NBR and other relevant authorities to act immediately, saying the growing volume of empty containers was undermining the operational efficiency of the country's principal seaport. Shipping agents and MLOs have also separately urged the NBR to amend the existing system.

CPA Secretary Syed Refayet Hamim told the Daily Observer that all imported containers including less-than-container-load (LCL) cargo is destuffed inside the port, while nearly 70 per cent of full-container-load (FCL) cargo is opened, inspected and delivered within the port premises that left thousands of empty containers accumulating in the yard every day.

He also confirmed that over 8000 TEUs of container are being handled in the port bonded area daily. But the stockpiled of nearly 4000 TEUs of empty containers are creating problems in proper and smooth operational functions of the port, CPA Secretary commented.

Recent figures reflect the growing congestion. As of 30 July, Chattogram's 21 private Inland Container Depot (ICDs) were holding around 55,940 TEUs of empty containers. At Chattogram Port, the number rose from 2,170 TEUs on 28 July to 2,670 TEUs on 29 July, adding pressure on already limited yard space.

Data from main line operators show that Bangladesh receives between 105,000 and 170,000 import containers each month, while only 60,000 to 70,000 export containers leave during the same period.

The private ICDs serve as an extension of the port, handling all export cargo, most empty containers, and 65 categories of import goods. Operators say shutting down off-dock operations would affect port activities and the national economy.

There are 21 ICDs, all in private sectors, can store about 106,000 TEUs of containers, nearly double the capacity of the port's own yards, which can hold around 60,000 TEUs. They handle roughly 2.2 million containers annually, including all export shipments and empty boxes returning from abroad.

The chamber attributed the problem to Bangladesh's structural trade imbalance, where imports significantly exceed exports, requiring shipping lines to retain large numbers of empty containers for extended periods.

It added that the issue is particularly acute for 20-foot containers, many of which remain unused for prolonged periods as exporters generally have a higher demand for 40-foot containers.

According to the letter, operational disruptions caused by heavy rainfall, natural disasters, labour strikes and other unforeseen events further exacerbate container congestion, adversely affecting the port's overall efficiency.

Allowing non-bonded storage facilities for empty containers in Bangladesh would enhance the country's trade competitiveness, improve logistics performance and ease congestion at Chattogram Port.