CPA step yields results as yards clear up

A prior warning from the Chittagong Port Authority (CPA) about a fourfold hike in container storage charges for longer stays has proved fruitful in combating acute congestion inside the port yards.

On February 19, the number of FCL containers reached over 31,000 TEUs against a total capacity of 40,368 TEUs.

A day later, the CPA director (traffic) issued a notice urging importers to speed up delivery by March 9. Otherwise, it warned that the charges would be increased fourfold.

The number of FCL containers came down to 25,000 TEUs by March 1, and the scenario remained the same till yesterday.

Meanwhile, the CPA started imposing higher rent on full container load (FCL) containers left undelivered beyond the four-day period on Monday after the declared deadline expired.

Berth operators reported that they had witnessed an improvement in the situation within a week as importers sped up delivery. The number of FCL containers came down to 25,000 TEUs by March 1, and the scenario remained the same till yesterday

However, the warning, which was given almost three weeks ago, yielded results well ahead of the deadline, port officials claimed.

The port had been experiencing a huge pile-up of FCL containers—meaning those occupied by a single importer's goods—since early last month, when the inflow of imported Ramadan cargo began to gain momentum.

Around 90 percent of imported containers arriving at the port are FCL containers.

At one stage, the yards dedicated to storing FCL containers exceeded 78 to 80 percent of their storage capacity.

The move was designed to reduce congestion, said CPA Secretary Md Omar Faruk, adding that ahead of Ramadan, a section of importers intentionally delays taking delivery of goods to manipulate market prices.

Usually, no storage rent is charged for the first four days after a container is unloaded from a vessel.

For a 20-foot loaded container, the port charges $6 per day for the first seven days after the free period, $12 per day from the 12th to the 20th day, and $24 per day from the 21st day onward.

For a 40-foot container, the charges double at each stage.

With the new imposition, importers will have to pay between $24 and $96 per day for a 20-foot container in phases after the four-day free period expires.

Berth operators reported that they had witnessed an improvement in the situation within a week as importers sped up delivery.

Hailing the timely move, Nazmul Hoque, executive director of Saif Powertec, which runs the New Mooring Container Terminal (NCT), said there is no congestion at the yards now.

Garment exporters, however, expressed concern over the higher rent, as a significant volume of FCL containers carry imported raw materials for the sector.

Nasir Uddin Chowdhury, first vice-president of BGMEA, said no garment owner wants to keep their imported containers at the yard for even an additional hour.

However, mentioning that it takes time to clear imports due to complexities in documentation and other valid reasons in some cases, the BGMEA sought special consideration for unintentional delays.

He also urged the authority to exempt FCL containers imported for the garment sector from the imposition.